> The only real advantage I can see is concentration of skill - e.g. people say that you basically have to develop electronics in Shenzhen, there's simply not enough talent in the US and EU - but I wonder if the efficiency gains are offset by innovation losses. Again, IMO it would be better to have a local high-skilled population of engineers & entrepreneurs.
That's exactly the argument that Tim Cook used a few years ago. He said that an iPhone not manufactured in China would cost 30k USD...before quickly moving manufacturing out of China. These arguments sound nice, but are lies. When offshoring first started the cheap labor pool was the only thing that mattered, and it still is.
That's exactly the argument that Tim Cook used a few years ago. He said that an iPhone not manufactured in China would cost 30k USD...before quickly moving manufacturing out of China. These arguments sound nice, but are lies. When offshoring first started the cheap labor pool was the only thing that mattered, and it still is.