Abstract

Companies in developed countries were increasingly shifting production to low cost destinations around the world. China, with its large labor force and low wages, was one of the leading low cost manufacturing centers. However, there were increasing concerns about the quality and safety of goods made in China. This caselet explores whether the savings achieved by companies through moving production to low cost destinations is actually counterbalanced by costs of a different kind.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• 0

Keywords

China, Outsourcing, Low cost manufacturing centers, Product recall, Quality and safety issues