Case: What Is Next for Chinese Manufacturing? p.224 – 225 – Using one outside source from the LIRN and your book, write a paper that has an introduction, three main paragraphs that answer the case questions listed at the end of the case and a conclusion. Ensure your paper flows. Use APA style and cite your sources.
Case Questions
8-25. China’s economic miracle rested on its abundance of low-cost unskilled labor. What type of goods would China likely export, given the predictions of the Heckscher-Ohlin theorem? Why?
8-26. China faces a cruel problem. The factors that were the foundation for its economic success will no longer work. What should China do?
8-27. Why is China trying to keep the value of its currency from rising? What would be the impact on the Chinese economy, Chinese workers, and Chinese consumers if the yuan were to rise in value?
8-28. If you were a representative of the Vietnamese or Bangladeshi government, would you support the efforts of U.S. and European diplomats to pressure China to raise the value of its currency? Why?
8-29. Suppose you are an official with Mexico’s economic development agency. Write a one-page memo detailing why firms selling to North American customers should relocate their Chinese factories to Mexico.
8-30. Some experts suggest that China will need to transition from its export-manufacturing based economy to an economy based on domestic consumption and an enhanced service sector. To make this transition, what changes in China’s economic and other public policies need to be made?
