Chapter 5 Closing Case - government the economy of the...

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Shawnae Cristobal International Business Professor Rayan September 16, 2008 Box # 283 Chapter 5: Closing Case Page 195 #7 7. I think that China is a favored location for a high tech company for many reasons. The first being the low cost of production. This allows the company to be able to make a larger profit. Another reason is the large client base. China is a very high tech society therefore technology products do well there. Because both the revenue from the products and the “taxes” from the workers wage both go to the
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Unformatted text preview: government the economy of the country is going to be good. The biggest potential problem with moving work to China is the loss of jobs here in America. If Americans lose jobs then the economy can crash which means Americans wont be able to afford the products that the company is producing in the first place. This then leads to the company going out of business which causes the Chinese people to lose jobs which causes their economy to crash. It is all one big chain reaction....
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