Question

Explain an advantages and disadvantage of factories in East Asia?

Answer 1

Answer:

One of the major advantages to working outside of China is that production costs can be dramatically lower. For example, in China, labor costs have risen over the past 15- 20 years, whereas in countries like Vietnam, India, and Bangladesh, the cost of labor has remained low. Another advantage is if you choose the right country for your product, it can decrease lead time and increase quality. A third advantage is that producing in other developing countries can help U.S. brands avoid Chinese tariffs.

However, there are also disadvantages to working outside of China.

The main challenge is that the raw material sources outside of China are not as broad as in China. Another is that infrastructure outside of China often lags, which means lead times can become a challenge and production delays can be more common.

Hope it helps!