Bureau of Labor Statistics. International Labor Comparison. Manufacturing in China. Retrieved September 12, 2011 from http://www.bls.gov/fls/china.htm.
The first literature review for manufacturing in China will consist of three aspects: a) Data comparability b) comparison of hourly rates of compensation of US and China c) comparison of hourly manufacturing compensation cost of US and selected economies and regions.
China manufacturing statistics don’t follow regular international standards and sometimes could be hard to understand the data. China does not systematically collect labor statistics like other countries and all of their information about manufacturing has been collected by a set of hypotheses and estimates by U.S. Bureau of Labor Statistics. Even though China data collection has many gaps, the International Community accepts the accumulated data as valid.
Hourly compensation costs of manufacturing employees of China compared to U.S. manufacturing from 2002-2008. The data tables suggest that China manufacturing cost has risen on a constant steady pace. In 2008 China manufacturing cost was $0.57 and in 2008 it $1.36 (Manufacturing in China). Largely there is still a big gap compared to U.S. manufacturing and you can where China has gain many manufacturing jobs due to their relative low cost of manufacturing.
Hourly compensation cost of manufacturing employees in selected economies and regions suggest that China has the lowest manufacturing cost out of U.S. , Japan, Europe, Mexico, Philippines and all East Asia countries (Manufacturing in China). The U.S had the highest manufacturing cost following closely by Japan (Manufacturing in China). U.S seems to be at a disadvantage on manufacturing hourly rates and companies will find that it is easier to manufacture in countries like China.

Banister, J., Cook, G. (2011). China’s Employment and Compensation Costs in Manufacturing through 2008.
The second literature review for China’s employment and compensation costs in manufacturing through 2008 will consist of a) China growth in hourly and compensation costs b) manufacturing labor shortages in China.
Despite global economic downturn China’s manufacturing sector has increased. China surpassed Japan as the second largest economy of the world and has become an important country in the global scheme. Manufacturing hourly compensation was only $1.36 in 2008 far below of any country in East Asia (Manufacturing in China, 2011). Japan hourly manufacturing costs are $27.80 and Taiwan is $8.68, but is on par with Philippines (Manufacturing in China, 2011). This means that China will continue to attract companies because of its low manufacturing costs.
China manufacturing statistics consists of rural and urban employment. Manufacturing employment in China increased by 1.1 million and most of it was out in the rural areas while their urban employment registered a dropped by 311,000 (Manufacturing in China, 2011). In my opinion that might mean that China manufacturing jobs are growing in the rural areas possibly because companies can find employees that are willing to work for less because they don’t want

to leave their hometowns. As jobs in China become more technological advanced, jobs are requiring more education and a higher skill level. From 2002 to 2008 hourly manufacturing cost in the U.S. increased by 19 percent, while China’s hourly manufacturing cost grew 100 percent (Manufacturing in China, 2011). This means that China job market grew exponentially contributing to the U.S. loss of manufacturing jobs in the States. This also meant that as jobs become more skilled people no longer want to work on low skilled jobs that don’t pay much. According to Judith Banister (Manufacturing in China, 2011) younger employees are moving away from agricultural jobs and into industry for the first time in China’s history. This is a direct threat to jobs that were traditionally U.S. These types of jobs such as computer, automotive and engineer will be needed more in China.

Bureau of Labor Statistics. International Labor Comparison. India’s Organized Manufacturing Sector. Retrieved September 12, 2011 from http://www.bls.gov/fls/india.htm
In the third literature review India’s organized manufacturing sector will consist of a) Organized vs. unorganized labor b) contract labor c) comparison with U.S labor costs.
India manufacturing sector consists of organized and unorganized labor. Organized labor is registered with the state while the unorganized is unregulated a not much information is known. India’s organized labor produces two thirds of the manufacturing input even though about 80 percent of India’s manufacturing workers come from the unorganized sector (India Organized Manufacturing Sector).
India tends to use a lot of contract workers to supplement its regular workforce. From 2006 to 2008 India started to use a lot more contract workers. This means that India is not willing to give benefits to its employees like social insurance, paid vacations and medical insurance. This could also mean that India does not have the necessary skilled labor to do their more technological advance jobs and they just have contracted them out.
Looking at chart 2 (India Organized Manufacturing Sector) Total Compensation cost of manufacturing costs in selected countries states that India is one of countries where manufacturing is very low. India closely follows Sri Lanka, Philippines and China as countries with very low manufacturing costs. China’s and India’s manufacturing costs are very similar. These are the two biggest competitors to the U.S. market and jobs. China and India have the skill labor necessary to steal jobs away from the U.S. due to cheap labor and highly skilled workers.

Bureau of Labor Statistics. Comparison of Manufacturing Productivity and Unit Labor Cost in 2009. Retrieved September 15, 2011 from http://www.bls.gov/news.release/prod4.nr0.htm
The fourth literature review is International Comparison of Manufacturing Productivity and Unit Labor Cost in 2009. The review will literally examine charts and tables by the U.S. Department of Labor towards manufacturing cost around selected countries. Manufacturing productivity decreased in 12 of 19 countries according to Bureau of Labor Statistics (International Comparison of Manufacturing). The U.S had the biggest increase in productivity while Japan had the biggest decline. This might due to the fact the U.S. was working toward achieving more productivity and make their products of better quality than lower manufacturing countries.

Internal Revenue Bulletin: U.S. Income Tax Treaties . Retrieved September 14, 2011 from http://www.irs.gov/irb/2003-42_IRB/ar09.html.
The fifth literature review is to review various tax treaties that the U.S has with other countries. The review will look at how these treaties impact the different countries. The U.S has tax treaties with over 60 countries around the world. Under these tax treaties residents are not taxed at a reduce rate, or are even exempt from U.S. taxes on certain items they receive from within the U.S. (U.S. Income Tax Treaties). Under these tax treaties residents or citizens of the US are taxed at a reduced rate and sometimes are even exempt from paying foreign taxes (U.S. income tax treaties). Most of the treaties that agree upon with the U.S and other countries contain a “saving clause” which prevents residents from the different countries to be double taxed (U.S. Income Tax Treaties). Companies are looking for ways to prevent double taxation because this hurts their profits. Usually less taxes means more job creation in most companies. Countries with lower taxes or tax incentives attract more investment. In order to spur the economy in the U.S, the government will probably will need to come with some sort of tax incentives for companies that are willing to stay in the U.S and create jobs. This give companies the incentive to continue operations in U.S soil and not leave to do business in other countries.

Ikerd, J. The Real Costs of Globalization. Retrieved September 12, 2011 from http://web.missouri.edu/~ikerdj/papers/Globalization.html.
The sixth literature review is the Real Costs of Globalization. In this review we will examine the a) concepts of global social community b) single global economy c) boundaries of globalization.
Global social economy is what makes the world what is today. Before the peak of globalization; countries were able to define their own borders, culture and ways of thinking. Today we have moved to tighter borders, and cultures have begun to assimilate to become more universal. Never before in mankind history have so many countries opened up their borders in free trade.
As the world open up their boundaries countries have had to adapt to the phenomena of a single global economy. Not since the great Roman Empire has the world been witness to a single global economy. In today world we have the European Community which is trading under one, and Countries like U.S., Canada and Mexico all trying to opened up their borders for Free Trade. According to John Ikerd (Real Costs of Globalization) leaders in today’s modern world are more interested in short run economic considerations than by long run concerns such as human culture and the natural environment. This is mostly due to the U.S. economic vision of free market and capitalism and has created this big single global economy that has all countries trading with each other. A single global economy is not a bad thing and is something that can make the world economy more balanced as third world countries are able to get products from countries that initially were not trading between them.
In earlier times countries boundaries were divided by natural elements oceans, mountains and deserts. Once countries started to become more industrialized the natural boundaries become less apparent and economical and political boundaries reigned. As the world turns into a global economy the remaining social and cultural boundaries that once defined history are slowly falling (Real Costs of Globalization). In today’s modern world economic and political boundaries have become obstacles to trade which limit the economic gains of countries. Contemporary economic free trade theory has its foundation from British economist David Ricardo from the 1800 (Real Costs of Globalization). Ricardo theory states that each country trades with one another when both countries gain something out of the trade (Real Costs of Globalization). This does not necessarily happen this way as economic giants are forcing the weaker ones to form economic partnerships that make the weaker countries dependent on them. Weaker economies are more dependent on the economic giants due to economic wealth, better economic infrastructure and technological advances.

Intriligator, M. (2003). Globalization of the World Economy: Potential Benefits and Costs and a Net Assessment.
The seventh literature review will review Globalization of the World Economy: Potential Benefits and Costs and a Net Assessment. The review will consist of a) Globalization of World Economy b) Impacts of Globalization on National Economies c) Benefits of Globalization from Stemming Competition d) The Costs of Globalization and Potential Conflicts.
Globalization has created the integrations of world markets and a movement to a borderless world. There have been several sources of globalization in the past decade to include technological advances, trade liberalization, changes in institutions, global agreements on ideology and cultural developments (Globalization of World Economy). Whether we see globalization as a positive or negative; globalization is here to stay and it has changed the world’s system creating new opportunities and challenges for all countries.
Globalization has had impacts on national economies such as foreign direct investments, technological innovation and trade in services to include managerial, legal, and financial information services (Globalization of World Economy). Countries have invested on the world markets at a rate never seen before. All this investment has played a very important role in the formation of global enterprises. Technological advances have helped enterprises do monetary transaction on any part of the world at a moment notice.
Globalization has struck fear in many countries and companies since they are losing jobs and capital to other markets. Besides all the negative connotations that have been said about globalization it also has its advantages. Competition is one of the greatest benefits of globalization; competition can lead to lower prices and better quality products (Globalization of World Economy). Other benefits of globalization can include gains of trade were both parties can benefit and increase productivity on a global scale (Globalization of World Economy).