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Wednesday, June 15, 2011

Chinese manufacturers: The end of cheap goods?

I have mixed feelings on this article.

Yes, China is no longer the endless supply of cheap labor it was.  But, in the electronics/computer area, there has been a continual decrease in prices with changes in technology.  And productivity has been improving, that has resulted in lower manufacturing costs.  Labor cost is often a small part of the total cost of an item.

Chinese manufacturers: The end of cheap goods? - The Economist

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