Location:
The Manufacturing United States or China
Introduction
Every country is growing
with the faster rate, there is a
migration of manufacturer
During 2006 to 2008 there is
also an appreciation in the
In chain the labor cost is
quite low which allow them
Mass production also allows
them to get more in low
cost.
In
America,
manufactures focuse more
According to this case. U.S companies will not bring back jobs from China in
industries whose products are currently made in China but can be a strong player
Chinesewagesandbenefits
in areas where the United States is at the forefront of innovation. Do you agree
Much cheaper labor costs in spite of soaring fuel cost and its rising
productivity,afactorwidelyoverlookedbytheworld.
with the opinion? Why? or Why not?
InAmerica,manufacturesfocusmoreontheinnovation
Inthesedaysandfuture,innovationtechniqueswillbestrength
Onthisstageconsumer Morebeneficialanduserfriendly
Chinaisnotfamiliarwiththatkindofmanufacturingindustryyetsoitisnot
Besides shipping costs, are there any other possible advantages for U.S. firms to
manufacture inside the country or any other possible disadvantage for them to
manufacture in China? If yes?, what are they? If not, why not?
AdvantagesforUSfirmstomanufactureinsidethecountry
property rights can be protected Copyright and trademark theft is
rampant
Proprietaryrightsaremuchmorevulnerablewithoverseasproduction
Nearly everyone knows someone who lost a job in manufacturing in
recent years so it can make to be expanded job positions in
manufacturingindustry.
Goodopportunitytojoblesspeopleinmanufacturingindustry.
1. Do you think is it a good idea for the Russian government to take the
measure of encouraging foreign carmakers to build factories in Russia
instead of setting trade barriers as it did in 2002 to help relieve its
carmakers from the challenges from imported used cars?
Bring many foreign carmaker into
Russia market.
invigorate the Russian car
industries.
development of their domestic
2. What obstacles might foreign carmakers encounter when they
expand to Russia`s market?
Foreign carmakers have to build a factory
-capacity of more than 25,000 vehicles a year
-a minimum investment of at least $100m
W t h i n f i ve ye a r s
i
of
pr o du c t i o n
3. Russia`s domestic carmakers are facing fierce competitions from foreign
counterparts as many local firm in other countries might do upon the arrivals
Idonotthinkthestrategiesofthelocalmarketerswillbeworking
Notenoughtoeradicatetheforeigncompetitors
of foreign firms. Do you think the strategies of Russia`s domestic carmakers
Applydifferentstrategies
Startpartneringwiththeforeignmakers
will work? Why or why not? Are there any other strategic option?
Formaunionwhichcancreateitsmonopolyinaparticularsegment
What implications can you draw from the case regarding competitions
between domestic firm and foreign firms as a common worldwide issue?
Co mpe t i t i o ns wi l l be mo r e a nd mo r e c u t - t h r o a t
Accordingtothecompetition
Industry of car market will expand and technical development of car
alsowillbeanessentialkeypointtoselectacar
Betterpriceandserviceareexpected.
They can also focus on the strategy of improving their quality so that the