My parents did what any self-respecting Indian family does before their kid heads to an interview—they took me to a temple. My stomach churned as the line slowly moved forward. My heart leaped into my mouth as I passed through the gates, only to be confronted by armed security guards who proceeded to take away anything I had in my pockets—pens, coins, paper, etc.
The guard gestured at my jeans. Resigned to my fate, I started to unzip them. Finally through the gates, I was taken aback at how simple the next room looked. Then I understood why—it was just a queue room. A room for this damn queue. Half an hour later we passed into the Interview Room. People lined up in front of about a dozen booths, each with a White Man or White Lady inside must be the Americans, I thought fearfully, please let them understand my accent.
The room was air-conditioned. I was sweating. It was large and airy. I gasped for breath. Now I was in front of one of the White Men.
He beckoned me forward. He smiled at me evil— no, pleasantly — it was a pleasant smile! Is this part of the interview? Smiling is good.
I smiled. He waited. Oh shit, he asked you a question. Answer it, jackass! He stared down at it for a minute. Not one? Are you crazy, man? I even lied about my day, it was shitty as hell, you should quiz me on it! Make me grovel for that visa, like the bastards I know you interviewers are!
Raman, and enjoy your stay in the United States of America. I was going to America courtesy this senile interviewer. Thank you Hanumanji! In the words of Tim Cook: "The popular conception is that companies come to China because of low labor costs. I'm not sure what part of China they go to, but the truth is China stopped being the low labor cost country years ago. That is not the reason to come to China from a supply point of view, the reason is because of the skill.
Let us compare 2 products: a plastic fork vs a plush toy. Although both products fall on opposite spectrums of the consumer life cycle one disposable whilst the other one is reusable , both are sure to be made in China. A plastic fork is made from food-grade Polystyrene PS plastic pellets or beads through a process known as plastic inject molding. In here the pellets are heated in a molding machine to a viscous state and are injected into a mold.
From here the product is moved into packaging and then sent out of the factory for export. A fully automated machine can be set to run continuously 24 hours a day with very little monitoring by a worker, thus being a low labor product. Now, let us look at that plush toy. The stuffed animal is comprised of textile material for the cover, stuffing, two eyes and a nose. The material must be cut into pieces, sewn together and stuffed. The nose, eyes and mouth are sewn onto the material together and stuffed, requiring skilled labor -.
The cutting of the pieces may be done by hand or by machine, but the pieces are sewn together by a worker using a high-speed sewing machine. Next comes the insertion of stuffing — this is rather complex for a machine to do, as such the insertion is done by hand and the insertion point is also manually closed.
In the end, much like a fork, the product is moved and packaged for export. Bangladesh, Vietnam and Mongolia to name just a few. Industrial production does not take place in isolation, but rather relies on networks of suppliers, component manufacturers, distributors, government agencies and customers who are all involved in the process of production through competition and cooperation.
The ecosystem of doing business in China has evolved quite a lot in the last thirty years. Here are the additional factors, including labor, that affect the overall cost of manufacturing and thus make Chinese exports cheaper:A. Commendable supply chain: Supply chain activities transform natural resources, raw materials, and components into a finished product that is delivered to the end customer.
No country, at present, has a supply chain more sophisticated yet flexible than China. Not only are private entities involved in the process of outputting raw material for manufacturing. Rather, many Chinese State Owned Enterprises SoEs actively control and output raw materials for small factories to transform into ready-made goods. If the government is involved in such activities, it is safe to assume that this is an active industry that requires not only oversight and monitoring, but active involvement.
Access to affordable raw materials helps bring down manufacturing costs to a considerable extent. As a result, having suppliers who are local to the manufacturer has gained importance as a way to cut costs[6].
Rebate upon Export: The export tax rebate policy was initiated in by China as a way to boost the competitiveness of its exports by abolishing double taxation on exported goods[7]. It is a tax only on the "value added" to a product, material, or service at every state of its manufacture or distribution. Chinese companies receive a VAT refund from the government for materials of products produced for export. Basically, factories that export do not pay any VAT on goods or raw materials used made for export — further subsidizing raw material costs.
Moreover, Chinese manufacturers work with far lower profit margins than those in the U. Efficient Infrastructure and Logistical Access: In its fast-paced effort towards industrialization, China has built many ports big and small , roads and railroad access.
Such a system is not secluded to the big cities Tier 1 or Tier 2 cities , it connects all of them, including Tier 4 cities or small towns used as industrial manufacturing zones.
Having an efficient logistical system allows for cheaper travel costs —the cost of units kilometers or miles per currency dollar or RMB decreases.
Also, an efficient infrastructure reduces overall downtime. Sometimes it is quicker and cheaper to actually get a shipment from Shenzhen than Kolkata.
Time is money and all those delays add to your cost. Moreover, the local government gives support with land access at competitive rates, creating jobs in the area. This further helps to diminish the cost of the end product — after all you have access to cheaper land, water and light What manufacturing does not require these? In non-industrialized or not fully industrialized countries Indonesia, Vietnam, India , access to water and electricity remains a critical issue, until today.
That means the machinery lies idle for sixteen hours and that wasted capacity adds to the cost. Hold on, there are more! Bureaucracy: Barriers for entry in China, in this context, are extremely low. Relevant departments and accountability are there; you do not need to grease palms to get what you need; streamlined government policies are in place.
Again, non-industrialized countries do not have many of these processes in place — they are in the early stages, whereas China has been through all this. I am not saying China is pure and not corrupt, there might be corruption in some cases, but the overall industrial process is so deeply rooted, that people just follow established guidelines. Greasing palms and running around places to get a stamp or a signature causes further delays time is money and increases overall costs.
They work hand-in-hand. Availability of the latest technology to manufacture products of a high quality on a large scale. And let's be honest, scalability can be a very important factor in deciding price of a product. Apart from technology, China has a large population, thus having a bigger access to a wide talent pool. Availability to a greater talent pool decreases the overall demand as there is an oversupply — again, denting the costs of the product.
If you recall, Tim Cook's main reason for manufacturing in China is: the depth of highly skilled labor in the manufacturing space. To rephrase what Cook said: "No other country in the world besides China has the combination of an electronic component supply chain and large pools of skilled labor needed to make iPhones on the scale which Apple needs. You can have someone do the same labor task for a comparatively lower price than say Europe or the USA for that matter.
This further brings down costs. As noted before, it is not the cheapest — but it is not the most expensive either. Posting items via international mail also requires the sending party to complete a customs declaration form.
Some nations require a customs declaration form from each person crossing the border, while other nations require one form per family traveling together. Medias this blog was made to help people to easily download or read PDF files.
Singapore Customs handles the customs imports and exports for Singapore. Controlled substances obscene articles, and toxic substances are generally prohibited entry.
Sri Lanka Customs handles the customs imports and exports for Sri Lanka [29]. Declare all articles on this form. If you are a U. Travellers have to declare everything they acquired abroad and possibly pay customs duty tax on goods.
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