BUSS 4 RESEARCH THEME- CHINA

ADVANTAGES - SETTING UP PRODUCTION

• Chinses manufacturers are known for cutting corners in order to produce cheaply and quickly
• Use counterfeit materials for the acceleration pedal
• Aston Martin had to recall 17,590 cars costing around £1.5 million

• If apple were to produce in the USA what they produce in China it would cost an extra $4.2 billion
• Allows them Apple to invest other aspects such as R&D
• Apple have a 34% market share in tablets with the second highest being Samsung at 19%

• Predicted to generate £30m in profits
• This is due to the decision to offshore 80% of production to china and close dowm most domestic facilities
• Vast costs to train the Chinese to use their machines but their low wages compensate