Is effectively reducing production costs a driving force for the shift Research Paper

Is effectively reducing production costs a driving force for the shift of Manufacturing from China to the USA - Research Paper ExampleExamples of these costs argon labor cost, transportation costs and supply chain perils. Increase in the cost of production has do the businesses to move near to their customers or moving back home where the production costs will be lower (Shephard, pg.67).There are numerous specific drivers which may be either external or internal to mainland China and which are forcing manufactures to seek another production locations the major one is the increasing contender for talents and labor costs. The biggest advantage for china was that it had cheap labor though that benefit is dwindling. So the increase in labor costs has become a major challenge for the companies which are operating in china these is because every fast growing and foreign company in china are all competing for employees who are qualified mainly those employees who have skills thus making it difficult for business to entice and maintain prime talents. The increase in labor costs has reduced profits of the manufacturers significantly (Janoski and Darina, pg 115).There are as well other costs which have increased too. The costs of real estates have increased nearly at manic rates due to the government institutions which have delegated minimum land charges. Other factors like electrical energy costs has excessively increased and the rate of corporate tax has raised to 25% from 15%, also the tax associated incentives has disappeared or it has not been easy to obtain. Increase cost of these inputs of production has made it difficult for the businesses to bring in china which has decreased the profits.The other cost which is related to production of manufacturers in china is the risk which is associated with the protection of intellectual property. Foreign companies which have been operating in china have been in perplex of guarding their intellectual property despit e the significant attention it has been receiving only a