search query: @indexterm OUTSOURCING / total: 222
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| Author: | Fang, T. Guntenberg, C. Larsson, E. |
| Title: | Sourcing in an increasingly expensive China: four Swedish Cases |
| Journal: | Journal of Business Ethics
2010 : NOV II, VOL 97:1, p. 119-138 |
| Index terms: | outsourcing production costs production case studies China Sweden |
| Language: | eng |
| Abstract: | Although China is often seen as the world's cheapest production country, the costs are increasing continuously due to the country's economic development and the New Labour Contract Law of 2008 that increased general labor costs in China. The purpose of this article is to understand the reasons why foreign companies still keep their production in China, despite the rising expenses. A case study of four Swedish companies operating in the textile and clothing industry is conducted. The results reveal that in addition to seeking low costs, for certain types of companies sourcing in China is also a strategy-driven decision. |
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