OFFSHORING AND RESHORING IN CHINA
China is probably the country that is having the greatest development nowadays due to many reasons, specially the fact that its labour costs are so low. That is why it is being able to produce big amounts of products with a wide variety of them and many countries purchase products from it. But they not only purchase its products, many countries are now starting to experience what is called “offshoring”, which is a process by which one company reallocates its business process from one country to another, and this countries are specially moving to China.It does not only take into account the business process but also operational process, such as manufacturing, or supporting process. The main reason why it happens is the following: Costs of operations in the new location are lower. Furthermore, offshoring also includes access to qualified personnel abroad, in particular in technical professions. As a conclusion, we can define offshoring as the replacement of domestically supplied services with imported services produced offshore. By doing so, companies save money that can be invested in other sources. It also has many other advantages, such as the following ones: The wages that companies have to pay to its employees are lower, given that the standard of living in countries such as China is lower than in others such as the USA, so the value of one dollar in China is higher than in the USA. It also provides a wide range of products, given that China has big infrastructures that enables workers to use more resources. Another advantage of this process is that it helps developing countries to grow. By allocating its resources in countries such as China, it stimulates its economy and more citizens are able to join the labour force and specialize in different fields. So far we could conclude that offshoring is making a great contribution both to developed and developing countries, saving costs for the first ones and stimulating the...