The Chinese Manufacturing Market

The Chinese manufacturing environment is cheap thus beat the skyrocketing pricing in the US. It explains why many American firms are moving out for production instead of working from within. In the last decades, the Chinese products were seen and thought of being low quality, but the tendency and quality are improving. The future economic giants are locating markets for their products in Africa, Asia, and Latin America. Many of the Chinese products find their way into the American soil, and people are positive about them. The wages in China has increased in the recent past, but the price of production remains small compared to the home country. The Japanese products, especially vehicles and machinery, outpace the US models on quality and prices. Those products from China are 5 percent cheaper than those manufactured in the US, and such difference is making an influence in the firms' decision to relocate. Factoring in the fewer regulations and fewer tariffs the shipping is not turning to be a problem. According to the Massachusetts and Cornell universities, India is responsible for over 700,000 outsourced jobs in the country.

The long-term negative impact of outsourcing has not been known towards the economy. On a short note, the companies are reaping more from the foreign lands and are becoming richer throughout the outsourcing. The consumers are happy to have cheap toys and products that ensure that they save more from their earnings. Though it will not last for long, the citizens are enjoying the free trade and associations allowing North American items to sell in the American soils thus allowing for competition and low-quality products. According to economists, the loss of the jobs will make the American poor and unable even to purchase the cheaper toys at the market.

Work Cited

James K. Jackson, Outsourcing and Insourcing Jobs in the U.S. Economy: Evidence Based on Foreign Investment Data. Congressional Research Service, June 21, 2013.

Karsten Bjerring Olsen, Productivity Impacts of Offshoring and Outsourcing: A Review. STI Working Paper 2006/1

Syud Amer Ahmed, Outsourcing, and US Manufacturing Employment. West Lafayette, Indiana, USA, June 2007