The Reversed China Phenomenon
Kangas, Juulia (2013)
HAAGA-HELIA ammattikorkeakoulu
2013
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-201305209754
https://urn.fi/URN:NBN:fi:amk-201305209754
Tiivistelmä
The objective of this thesis was to study the relocation of production back to Europe and the US from China. In order to be able to study this reversed phenomenon of production movement, concepts regarding internationalization and international production had to be researched. It was also essential to study China’s economy and the China phenomenon, which signifies the original movement of production to China.
The research was implemented in the form of a desk study, using existing literature and publications. The theoretical framework consists of relevant theories of internationalization as well as the China phenomenon. Some sources were used for the study of the reversed phenomenon but this also left space for interpretations, and in the end conclusions were drawn by analysing the data available. Due to the phenomenon being current, news articles were found and used abundantly in addition to scientific releases and books. The theoretical framework proved to be sufficient and gave the author the necessary information to understand the reversed China phenomenon.
The results of this thesis answered the main research question which was “Why have companies moved production to China and why are they now coming back?”.
The results proved the phenomenon to be a current event with many participants and with more to come. The results of this thesis are useful to companies that are involved in international production or that are contemplating the option. The study offers a vision on production relocation and also on the benefits and costs involved.
The significance between the location of production and the location of the target market proved to be essential. The big gap between China and other developing countries, proof of rising costs and also the number of companies already taking part in the reversed phenomenon turned out to be important findings.
The research was implemented in the form of a desk study, using existing literature and publications. The theoretical framework consists of relevant theories of internationalization as well as the China phenomenon. Some sources were used for the study of the reversed phenomenon but this also left space for interpretations, and in the end conclusions were drawn by analysing the data available. Due to the phenomenon being current, news articles were found and used abundantly in addition to scientific releases and books. The theoretical framework proved to be sufficient and gave the author the necessary information to understand the reversed China phenomenon.
The results of this thesis answered the main research question which was “Why have companies moved production to China and why are they now coming back?”.
The results proved the phenomenon to be a current event with many participants and with more to come. The results of this thesis are useful to companies that are involved in international production or that are contemplating the option. The study offers a vision on production relocation and also on the benefits and costs involved.
The significance between the location of production and the location of the target market proved to be essential. The big gap between China and other developing countries, proof of rising costs and also the number of companies already taking part in the reversed phenomenon turned out to be important findings.