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Made in China - Your Financial Future
While much of the world’s economy has been global for some time, the advent and expansion of the Internet has redefined what it means to have an international consumer marketplace. Companies around the world are now competing at substantially different levels on price for manufactured goods in particular. And, most notably, China has become a powerhouse in the manufacturing and distribution of low cost goods worldwide. While many consumers do not pay notice to this growing trend of items “made in China”, some are viewing this growing trend with concern. And, just as many individuals are looking at the “Made in China” tag as an opportunity. How will this label affect your financial future?
Job Growth and Change
One of the primary changes or considerations for your financial future is the globalization or outsourcing of jobs. In order to compete in this new global marketplace, many employers are being forced to outsource many of their local roles to those internationally who are trained and willing to fulfill those job responsibilities at a lower rate. The global outsourcing of domestic jobs can affect almost any industry, although there are a few that are more heavily impacted than others. For example, telecommunications, web programming and even telemarketing are some of the human based roles that are being outsourced daily. Also, freelance sites are becoming more popular, allowing global providers to bid and complete a variety of jobs at lower rates than many of the buyers are able to find domestically.
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Manufacturing of Products
The next largest area that is heavily affected by the “Made in China” label is the manufacturing industry. With the ability to produce almost any product, in larger quantities and for lower costs, many consumer brands are transporting their product research and manufacturing to China. Manufacturing companies in China are mass producing virtually all consumer products for nations around the world. What does this mean for you? This means a few things. It means that you potentially will have lower costs for consumer items. When you go into a retail store, you may have the option to purchase homemade consumer products for a premium sitting next to the same product produced in China for a lower cost. It also can potentially mean in relationship to the national job market, that your position, or others that you know will be eliminated in search for lower wage product production.
Lower unemployment rates do not only affect those who are unemployed, but they can affect the overall health of the entire nation’s economy. This effect can change stock growth, significantly impacting millions of people’s portfolios.
So, when a label says “Made in China”, it is not only a product that is made in a foreign land. The label means a potential effect on someone’s investment portfolio, their consumer prices and potentially their job security. While a global economy is certainly a known for both today and the future, many do not fully understand what this means for their immediate economic future.
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