Friday, September 02, 2011

Made In China: Frisbee Versus a Stuffed Toy Animal

I love analysis and this one's a doozy.  Pass it along to anyone who might benefit.  It's interesting (don't know if it is all necessarily accurate)  I welcome your comments to challenge or agree with what's said.

An excerpt from, "Why is China Cheaper?"
Most people would say the answer is obvious -- lower wages in China compared to the United States. However, that answer is only partially true. Why? Because labor is only one part of the total cost of a product, and in many cases it's as low as 20% of the total cost.

Let's compare two simple products that are primarily made in China: a stuffed toy animal for a baby and a Frisbee.
And the winner of the product -- frisbee or stuffed toy animal -- made the cheapest in China is ...

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