The Advantages and Disadvantages of China for Manufacturing Garments - Essay Example

The paper "The Advantages and Disadvantages of China for Manufacturing Garments" is an excellent example of an essay on business. China has been portrayed as the most competitive nation among the major garment producers through the utilization of technological innovation and the renovation of the industrial configuration (Qiu 1). Over the years of specialty, China has improved its aptitude to compete successfully in the textile venture. China's ability to compete successfully has been marred by the prologue of new strategies to beat its unexceptional competition although none of the competitors have managed to beat China’s markets. The competitiveness of China lies in the fact that China has the ability and technologies to develop almost all types of fabrics for their garments at very satisfactory or competitive prices (Abernathy, Volpe and Weil, 2). Despite the prowess in garment production, China still faces problems within the local manufacturing. However, the advantages far outweigh the disadvantages that affect the manufacturing industry for garments in China.

China extended its overseas trade rapidly through the assistance from the vertical specialization that allowed it to attain comparative advantages in novel merchandises bearing the attributes of ever-changing universal demand as well as technological advances. Additionally, China has gradually been integrated into the universal commercial organization. The move initially saw China ranked third, as the worldwide principal exporter. The attainment of the WTO served as a greater milestone towards the augmentation of the competitive conditions in the global markets that greatly affected the garment manufacturing industry (Cukul, 5). Various factors have greatly been preferential towards constant enhancement, in the efficiency, and universal competitiveness of China garment manufacturing business (Cukul, 6).

In China’s context, there is abundant labor, which means that it is inexpensive. The plentiful labor crops from millions of unemployed citizens in the labor force. The labor force not only assures a constant supply of cheap labor to the garment producers but also reduces the expenditures for the government's financial reorganization. Despite the plentiful labor preserves, the labor is regarded to be of inferior quality since the laborers may not be in possession of anticipated skills and competencies.

China bears the capacity to enhance more productive and technologically oriented industries than other principal garment producers making the nation unbeatable in the segment. This can be accredited to the profits achieved in comparison to the wages utilized in labor. The profits can, therefore, be utilized in the implementation of technologies that enhance production. The governments in conjunction with the garment industry implement decrease prices than their contenders. The lower prices help in obtaining a market for their merchandise.

The country has also been successful bearing in thought the rapidity in which transformation and reorganization of the industry have transpired. Additionally, encouraging infrastructure and tolerant labor laws that give emphasis on social safety rather than work security have been imperative in the improvement of the garment industry (Cukul 7). The accommodating policies have assisted in the modifications in relation to the ever-changing in a marketing environment.

The banking structure in China cannot be regarded as satisfactory meaning that it may ground to macroeconomic unsteadiness. The banking sector is unrefined, therefore, prone to management that creates unnecessary lending and non-thriving loans that only serve to squander monetary resources (Cukul 7). The improvement in China’s prowess relies greatly on huge overseas resources although the country bears a communalist government. Therefore, it can never be acclimatized to a tolerant financial system plus the necessities for globalization. China has also been faced with the problem of changing the commerce environment due to the negative claims concerning the discarding of its merchandise. The country has been faced with augmenting labor costs. The augment in labor costs greatly affects the garment manufacturing in the sense that the business environment changes that lead to lower reaps (Cukul 8).