China Economy – Benefitting UK Businesses
The business I am choosing is H&M, many off the goods supplied to them are manufactured in China.
The goods which are supplied from China to H&M consist of; Hats, scarf’s, sweaters, denim, belts, T-shirts, dresses, shoes, lingerie etc.
The fact of goods being manufactured in China has its advantages, a few of them are; its cheaper to get the materials required to make the merchandise, cheaper with the whole process of manufacturing the goods, its also cheaper when paying the staff whom make the goods because they accept lower income.
Due to the goods being produced and imported from china to the UK businesses, when put on to the shop floor the price of the goods then become acceptable and affordable, because the effort and money put into making that product was not really great, so the profit is easily obtained.
The consumer would benefit these prices because they can buy what they desire for prices in which they can afford. Furthermore the business would profit due to them making sales because the public can afford their merchandise and they would sale on a larger scale.
However if the goods were made in the UK instead of abroad in this case China, the actual price of the product would be far more expensive then if it was manufactured in China. This is because when the goods are made in the UK the process of gaining the materials are expensive, the demand of wages you would have to pay the workers would be more