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Yolanda Negron Companies Migrate Back to the United States MAN3353 – Management Theory/Practice Spring 2013 Dr. Eric Aguilar March 22, 2013

In recent years, many Chinese companies have been moving to the United States. After research I found that the reason for Chinese companies migrating to the United States is due to several factors such as increase in wages, a rise in the value of currency and the rise in shipping costs. The increases has forced some Chinese companies to show less interest in smaller orders after the time and cost to ship these products was just not producing enough revenue to fulfill these orders. Addition, Chinese have been hit with high anti-dumping tariffs for importing products that were sold cheaper than what it cost them to make the products, this caused an excessive disadvantage for others in the same industry. The Chinese have some advantage and disadvantages if production were moved to a country that could profit from all that Chinese had to offer. Some of the advantages these companies are hoping to gain from relocating production to the United States are lower salaries, reduced costs for raw material, to possibly gain government incentives and to pay lower taxes and avoid fines and penalties. For these reasons, some companies who left the United States years ago to find greener pastures in China have now come back to the United States such as General Electric. The increase in wages results in China not being able to supply manufactured products at the cheapest prices as they done in the past. As the wages rise and cost of material rise, smaller companies begin to wonder if it is worth the time and trouble to invest in an overseas source for their materials. Migrating to the United States from China would put the companies closer to customers. It would help to reduce the wage expense. The rapid increase of wages is not the only

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