Reshoring - origins and basic conditions Cover Image

Przyczyny powstania oraz podstawowe uwarunkowania reshoringu
Reshoring - origins and basic conditions

Author(s): Marek Marczak
Subject(s): Economy
Published by: Wydawnictwo Naukowe Uniwersytetu Szczecińskiego
Keywords: reshoring; offshoring; increase of the manufacturing costs in China

Summary/Abstract: The paper, based on the example of China and the United States, presents basic economic conditions related to the return of production from developing countries to developed ones. As gap in labour costs between China and the U.S. is narrowing, in decisions on production location, proximity of production to primary market starts to play a key role. Increase in wages in Chinese factories on the one hand translates directly to increase of costs of production, on the other hand it builds domestic demand. This implies existence of two parallel processes: further continuation of offshoring and appearing of reshoring processes. The basis for making the decision on the production location is total landed costs of products delivered to the primary market.

  • Issue Year: 2014
  • Issue No: 08
  • Page Range: 77-86
  • Page Count: 10