Subject category:
Economics, Politics and Business Environment
Published by:
IBS Case Development Center
Length: 7 pages
Data source: Published sources
Topics:
China; Comparative advantage; Low cost manufacturing base; Manpower cost advantage; US Bureau of Labour Statistics; Migration of manpower; China's one-child policy; Social welfare funds; Statutory benefits; Turnover rate; Skilled manpower shortage; Managerial level talent; Rising cost of business
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Abstract
China''s enormous pool of low cost manpower had enabled it to develop as a manufacturing base for companies across the globe. However, since 1998, the situation seemed to be fast changing with China facing a shortage in the availability of skilled manpower. Experts predicted that this would lead to an increase in the cost of available manpower and therefore increased costs for businesses. They feared that this would result in China losing its competitive advantage as a low cost manufacturing base. However, some experts were of the opinion that the shortage of manpower was merely a temporary phenomenon and China would continue to be a low cost manufacturing base. The case helps in understanding China''s competitive advantage as a low cost manufacturing base because of the availability of low cost manpower and the reasons for increase in manpower cost since 1998. The case provides scope to discuss whether China would lose its competitive advantage as a low cost manufacturing base for global companies.
Location:
Other setting(s):
1998-2005
About
Abstract
China''s enormous pool of low cost manpower had enabled it to develop as a manufacturing base for companies across the globe. However, since 1998, the situation seemed to be fast changing with China facing a shortage in the availability of skilled manpower. Experts predicted that this would lead to an increase in the cost of available manpower and therefore increased costs for businesses. They feared that this would result in China losing its competitive advantage as a low cost manufacturing base. However, some experts were of the opinion that the shortage of manpower was merely a temporary phenomenon and China would continue to be a low cost manufacturing base. The case helps in understanding China''s competitive advantage as a low cost manufacturing base because of the availability of low cost manpower and the reasons for increase in manpower cost since 1998. The case provides scope to discuss whether China would lose its competitive advantage as a low cost manufacturing base for global companies.
Settings
Location:
Other setting(s):
1998-2005