Is effectively reducing production costs a driving force for the shift Research Paper

Is effectively reducing production costs a driving force for the shift of Manufacturing from China to the USA - Research Paper patternExamples of these costs are labor cost, transportation costs and supply chain risks. Increase in the cost of production has made the businesses to move near to their customers or moving back home where the production costs will be lower (Shephard, pg.67).thither are numerous specific drivers which may be both external or internal to china and which are forcing manufactures to seek another production locations the major one is the increasing competition for talents and labor costs. The biggest advantage for china was that it had cheap labor though that benefit is dwindling. So the increase in labor costs has become a major challenge for the companies which are operational in china these is because every fast growing and foreign company in china are all competing for employees who are qualified mainly those employees who accept skills thus making it difficult for business to entice and maintain top talents. The increase in labor costs has reduced profits of the manufacturers significantly (Janoski and Darina, pg 115).There are also other costs which view as increased too. The costs of real estates have increased nearly at manic rates collect to the government institutions which have delegated minimum land charges. Other factors like electricity costs has also increased and the rate of corporate tax has raised to 25% from 15%, also the tax associated incentives has disappeared or it has not been easy to obtain. Increase cost of these inputs of production has made it difficult for the businesses to operate in china which has reduced the profits.The other cost which is related to production of manufacturers in china is the risk which is associated with the protection of intellectual property. Foreign companies which have been operating in china have been in worry of guarding their intellectual property despite the significant a ttention it has been receiving only a