friendly1uk
1 MW
Well I imagine it kept some long term projects in-house. It's not really going to happen though. If it's not China making things cheaper, It will be somewhere else.
Manufacturing in USA will be cheaper than China by 2015
- Thread starter Magzy
- Start date
Nice bump!
The article that triggered this thread shows the danger of extrapolation.
Here's a more recent Economist article that may help explain why the prediction didn't come true:
http://www.economist.com/news/briefing/21646180-rising-chinese-wages-will-only-strengthen-asias-hold-manufacturing-tightening-grip
From the summary paragraph:
"One of the first lessons in Economics 101 is the concept of comparative advantage. Countries with lots of cheap workers should produce labour-intensive goods; rich countries should focus on those requiring plenty of capital. Richard Baldwin, an economist, argues that simply comparing national advantages is outdated. As supply chains spread across borders, regional comparative advantage matters even more. With its bounty of both labour and capital, Asia has already built up a huge lead in manufacturing. It only stands to grow."
The article that triggered this thread shows the danger of extrapolation.
Here's a more recent Economist article that may help explain why the prediction didn't come true:
http://www.economist.com/news/briefing/21646180-rising-chinese-wages-will-only-strengthen-asias-hold-manufacturing-tightening-grip
From the summary paragraph:
"One of the first lessons in Economics 101 is the concept of comparative advantage. Countries with lots of cheap workers should produce labour-intensive goods; rich countries should focus on those requiring plenty of capital. Richard Baldwin, an economist, argues that simply comparing national advantages is outdated. As supply chains spread across borders, regional comparative advantage matters even more. With its bounty of both labour and capital, Asia has already built up a huge lead in manufacturing. It only stands to grow."
