what are the implications for Mexico, if any, of the recent battering of the “Made in China” brand?
Low Cost Emphasis Can Lead to High-Risks China’s rapid economic growth and attractiveness as a manufacturing site stems largely from its many strengths as a low-cost competitor, including low wages, high productivity, a huge supply of labor as well as cheaper land, buildings, and machinery. These advantages, coupled with the fact that China represents a consumer market of vast potential, have compelled an array of manufacturers to establish operations (to offshore production) or to rely on China for sourcing requirements (to outsource). China’s economic growth and ascendancy in manufacturing, in particular, has been rapid and impressive. Since the country entered the World Trade Organization in 2001, its exports have risen threefold and foreign direct investment inflows have almost doubled (see charts below). In 2004, the country overtook Japan to become the world’s third leading exporter, behind the US and Germany. Its major export industries include textiles and apparels, and consume
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