Side-by-Side Comparison of China, Mexico Manufacturing

choi

David Luhnow and Bob Davis, For Mexico, an Edge on China. Wall Street Journal, Sept 17, 2012
http://online.wsj.com/article/SB ... 87191288101170.html

Quote:

Mexico "has built neither the skilled labor pool nor parts-supply chain * * * [Due to the latter,] American companies earn 37 cents for every dollar that Mexico exports because Mexican companies rely heavily on US-made parts. Chinese companies use mostly locally made inputs.

Mexico "exports more than the rest of Latin America combined * * * China now exports about $1.9 trillion of goods a year worldwide, about five times as much in dollar terms as Mexico. A decade ago, China exported about double Mexico's tally. Since than, the average wage across China has climbed to $2.50 an hour, including benefits, from 60 cents in 2000, according to Flextronics International Ltd, a Sngapore-based electronics maker with 40,000 workers n Mexico and 100,000 in China. Mexico's average wage, including benefits, is about $3.50 an hour, the company said. In coming year, wages in China will likely top those in Mexico.

My comment: I recommend this report.