First of all, transportation costs from China to America may be costly, reducing the cost advantage the company has. Secondly, by keeping close to consumers, the company is always aware of the current demand and may make shifts in its production plans to meet it. Thirdly, producing under local brands and producing in the U.S. lends more credibility to final products and allows for selling them at American prices. Finally, creating workplaces in America for Americans makes the company fully integrated into the local market and significantly reduces its risks.
Why doesn’t Wanxiang just shift production to China?
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Academic.Tips. (2022) 'Why doesn’t Wanxiang just shift production to China'. 9 October.
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Academic.Tips. (2022, October 9). Why doesn’t Wanxiang just shift production to China? https://academic.tips/question/why-doesnt-wanxiang-just-shift-production-to-china/
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Academic.Tips. 2022. "Why doesn’t Wanxiang just shift production to China?" October 9, 2022. https://academic.tips/question/why-doesnt-wanxiang-just-shift-production-to-china/.
1. Academic.Tips. "Why doesn’t Wanxiang just shift production to China?" October 9, 2022. https://academic.tips/question/why-doesnt-wanxiang-just-shift-production-to-china/.
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