Global

People who watch such things are now saying that globalization is ending. This means new locations for production and new supply chains. One leading example is Apple. Apple is moving production of I phone out of China to India and production of Mac's to Vietnam. While it is in part about low wages that is not the whole story since in India the average monthly pay is $450 and in Vietnam $160. Apple products are not bulky so shipping cost are not a major concern but even so shipping cost have increased 300% in the past two years. The question is if Apple is going to build all new facilities why not build in the US. Labor costs are not the reason since the labor cost is $15 to $30 per unit so if the US labor costs would add $200 to the price of an I phone. There would be a savings on transportation and supply chains would be safe and secure. The good will of producing in America would be worth a lot. The next step would be to develop suppliers with facilities here in the US. This would eliminate the child labor used by many of Apple's suppliers.