Reference no: EM132828759

Based on this week's lesson - External Economies of Scale and International Location of Production, you are required to share and discuss your point of view based on the following issue.

China - The end of cheap labor?

Cheap labor has long been considered as the main factor behind the Chinese economic miracle, propelling the country to the status of the world's factory, shifting global supply chains, and igniting debates in other countries about companies moving their plants to China.

However, recently wages are rising fast in China as labor costs have risen rapidly in the country's vast manufacturing sector.

The fundamental reason for the acceleration in wages is that China might be ceasing to be a labor surplus country (low-cost labor country).

So, do you think China still able to hold onto its advantages as low-cost labor country? Yes or No? Discuss.