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A factor that contributes to the costs of manufacturing an item is the labor cost. It includes wages and benefits given to workers along the supply chain.
As both China and Mexico are developing countries, a worker earns a much lower wage than that of a worker belonging to a developed economy. For instance, the average American earns three to four times the average wage of a Mexican with the same job; he also earns four to six times the average wage of a Chinese worker.
Hence, many companies which are labor-intensive, migrate to these countries to lower costs of production.
What else can I help you with?
Can dolls be manufactured in Mexico?
Yes. However, for mass production and cheaper production costs, you should look for specific manufacturing hubs in Mexico.
How come mostly everything is made in china?
Because their production of their products is easier cheaper.
Why is it less expensive to make toys in China?
Cheaper labor and less restrictive production standards .
Why Is The Herheys Company Moving To Mexico?
Cheaper production costs and lower worker wages contributed to this decision.
Why did Oreos move to Mexico?
Cheaper production costs, tax incentives and good transportation infrastructure are the main factors when companies move from the U.S. to Mexico.
What is the reason the U S agreed to create maquiladoras in Mexico?
Cheaper production costs and tax intensives were among the most important.
What was the Production Budget for Cheaper by the Dozen?
The Production Budget for Cheaper by the Dozen was $40,000,000.
Why is everything made in China?
Many things are made in China, but not everything. Companies have their factories in China and other countries because production is cheaper.
Which is cheaper December vacation Mexico or Bahamas?
Mexico
Is Hershey's moving to Mexico and China?
I have heard to Mexico, but not China
Could Colgate make their toothpaste in Mexico even though they are an American Co?
Of course; many American companies take advantage of cheaper production and labor costs in less developed countries such as Mexico or China and manufacture their products in such countries. This is called "offshoring" and unfortunately, is the reason many industries have closed their operations in the US and migrated whole industries into other countries.
Why are fruits sold in the United States from other countries?
The United States does not produce enough fruit to sustain its population. It must trade with other countries to get fruit (mostly China and Mexico). Another reason is that it is usually cheaper to get fruit (or any material) from other countries such as Mexico or China.
