Questions For "Spotted Again In America: Textile Jobs."
Assignment for Ch 10 (Outsourcing)
Questions For "Spotted Again In America: Textile Jobs", Wall Street Journal, Dec 21-22, 2013. Please answer the following question typed or hand written (10 Points). The article relates to Ch 10 on outsourcing.
1. What is happening in Lancaster Co. North Carolina near Charlotte, NC?
a. How much investment? Keer Group Co., has agreed to invest $218 million to build a factory.
b. How many jobs? Keer expects to create at least 500 jobs.
c. Where is the company coming from who is opening the plant? Zhu Shanqing, who owns a yarn-spinning factory in Hangzhou in China's Zhejiang province
2. What happened to all of the textile plants in the southeast in the past 20 years? (1993-2003)
In November, 114,900 people worked in U.S. textile mills, a sharp decline from 1993, when 477,300 people worked in the mills, according to the U.S. Bureau of Labor Statistics. It means that -362,400 of textile work force in U.S. since 1993.
3. Explain how each of the factors caused the Keer Group (this Chinese company) to come to the US?
a. Labor? Even, in U.S. the labor cost will raise, but the difference will shrink as Chinese salaries keep rising. And it will be compensated for by other savings.
b. Regulations? Manufactures in Central America can send finished clothes duty-free to the U.S. unlike companies in China.
c. Proximity to? To Charlotte's banks and the port in Charleston, S.C. To Central America, where it can send yarn to manufactures there and take advantage of clothes makers there.
d. Other infrastructure? Industrial land prices have soared, making expansion difficult in China, since the textile industry is plagued by overcapacity; the local governments are reluctant to sell land to producers.
4. How does NAFTA (The North America Free Trade Agreement between Canada, Mexico and the US) matter in this case? U.S. duties on imported yarn and clothing have existed for decades. But trade pacts such as the North American
Questions For "Spotted Again In America: Textile Jobs", Wall Street Journal, Dec 21-22, 2013. Please answer the following question typed or hand written (10 Points). The article relates to Ch 10 on outsourcing.
1. What is happening in Lancaster Co. North Carolina near Charlotte, NC?
a. How much investment? Keer Group Co., has agreed to invest $218 million to build a factory.
b. How many jobs? Keer expects to create at least 500 jobs.
c. Where is the company coming from who is opening the plant? Zhu Shanqing, who owns a yarn-spinning factory in Hangzhou in China's Zhejiang province
2. What happened to all of the textile plants in the southeast in the past 20 years? (1993-2003)
In November, 114,900 people worked in U.S. textile mills, a sharp decline from 1993, when 477,300 people worked in the mills, according to the U.S. Bureau of Labor Statistics. It means that -362,400 of textile work force in U.S. since 1993.
3. Explain how each of the factors caused the Keer Group (this Chinese company) to come to the US?
a. Labor? Even, in U.S. the labor cost will raise, but the difference will shrink as Chinese salaries keep rising. And it will be compensated for by other savings.
b. Regulations? Manufactures in Central America can send finished clothes duty-free to the U.S. unlike companies in China.
c. Proximity to? To Charlotte's banks and the port in Charleston, S.C. To Central America, where it can send yarn to manufactures there and take advantage of clothes makers there.
d. Other infrastructure? Industrial land prices have soared, making expansion difficult in China, since the textile industry is plagued by overcapacity; the local governments are reluctant to sell land to producers.
4. How does NAFTA (The North America Free Trade Agreement between Canada, Mexico and the US) matter in this case? U.S. duties on imported yarn and clothing have existed for decades. But trade pacts such as the North American