do you consider yourself educated about the world, even in the slightest?
Posted by James on March 29, 2013 · 6 Comments
Question by itssoeasy: do you consider yourself educated about the world, even in the slightest?
if so, can you help me with this?
how do the china recalls affect the economy?
thanks, peace out.
Best answer:
Answer by anonymous_me
more countries will probably second guess alot more because of the numerous recalls hence the Chinese economy(which partly depends on its production) will in one way or another be negatively affected.
Add your own answer in the comments!
I would guess that the companies that ordered these faulty goods will be entitled to a complete refund,. Even if they did not it would not affect the national economy in the slightest
prices go up as the companies affected recall items and have to pay to make sure their current and future production lines are ‘safe’ – the companies affected will pass the cost onto the consumer.
also, consumer’s lose confidence in the market and buy less toys from these companies. could be big with the biggest retail season of the year coming up for US markets (christmas).
chinese manufacturer’s will need to increase cost to use better materials. chinese gov’t will need to hire more inspectors to ensure they are producing and exporting a ‘safe’ product. companies importing said products will need to hire more inspectors and do more testing to insure product passes gov’t standards. all of this cost will ultimately be passed onto consumers purchasing the product or through gov’t subsidies.
finally, other exports/imports may suffer if a tipping point occurs and consumers worldwide lose confidence in the manufacturer and/or the country’s exports where the problem occurred.
This whole China situation with tainted pet food and tainted toys is going to have its repercussions. It goes back to outsourcing. I heard that only 1% of the items outsourced by American companies has any kind of quality control. That is unnacceptable. American companies that insist on outsourcing are going to be held accountable in the very near future for the safety of the products they outsource.
Whoever is doing the outsourced work for these companies is probably not going to do quality control for free. These American companies will have to pay for quality control, which of course will drive the price up.
Disposing of tainted food products and non-perishable merchandise costs money as well. One company’s disaster is a boon to another company. Waste Management, for instance, will make money because tainted foods and other tainted products just can’t be tossed into the trash can. They have to be disposed of in a proper manner.
In the final anlaysis, companies that outsourced products that are used in the homes of American familes may have opened up themselves to more problems than it was worth. There will be hundreds of lawsuits filed and this will be in the courts for years. Next time, think things through.
Simple, the price of toys and everything else that the US exports from China will go up, up, up in costs. US wages are not comparable to US costs of living, therefore, any increase like that affects the consumer negatively. Looks OK for China’s economy though because of Fair Trade they aren’t going to lose any customers.
depending so far politically we have used trade to there economically to not have them make war on other nations
it is getting highly expanding with technology we lost jobs cause of foreign trade with China
theirs, or ours??