Minimum wage hikes across China and impact

An article in Bloombergbusinessweek ( March 12,2012) describes minimum wage hikes of 9% in Beijing, 14% in Shenzhen and 35% in Henan. Given the Chinese system where minimum wage is a local decision, and local demand supply conditions demanding such adjustment, what should US manufacturers currently sourcing in China do ? Should manufacturing be moved to inner China locations with lower wages but higher transport costs ? Should production be moved to other countries, even then US as a possibility ? Will such minimum wage mandates resolve the accusations of sweatshop conditions that are being waged against manufacturers like Apple ?

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About aviyer2010

Professor
This entry was posted in Global Contexts, Operations Management, Supply Chain Issues and tagged , , , , , , , , . Bookmark the permalink.

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