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    China's Rising Wages: A Case Analysis

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    Assignment Details:

    Write a short (2-3 single-spaced pages) paper analyzing the case. Do not simply provide your answers to the discussion questions listed at the end of the case. Instead, write a paper with your full analysis of the case and make sure you have also completely addressed the included questions as part of your analysis.

    Before starting your analysis, I suggest you read the case twice. Your paper should do more than describe the situation summarized in the text. You should provide your assessment of the situation and its causes, and offer suggestions and solutions when possible.

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    Solution Preview

    How Rising Wages are Changing the Game in China

    Labor shortages in China have forced company to boost wages and it becomes a tough challenge for the different businesses operating in this country. Companies like Yongjin Group, Emerson Climate Technologies Co., are facing the same problem of keeping up their employees from jumping to other multinational companies. China used to be known as having an inexhaustible supply of cheap labor but with what has been happening lately, it is better said that China is facing a limited supply of labor.

    Companies thought the problem of labor shortages was just temporary when it first cropped up in late 2004 but recently, a surge in both turnover and wage costs is convincing multinationals and their suppliers that this phenomenon is going to be permanent. Wages in China and elsewhere are gradually closing and the effects are price increases to the consumers in the U.S. and in other markets. The recent continuous growth in labor costs in China is definitely going to have implications for inflation worldwide and China runs the risk of losing its advantage of cheap labor. Most Chinese ...

    Solution Summary

    The solution analyzes the business case: How Rising Wages are Changing the Game in China. References are included.