Quote:
Originally Posted by SenorChip
Maybe is because China is a big market, as big as USA. So, USA wants to sell everything to that market from iphones to cars. Also China has a lot of money to invest in factories, central american countries could do the job but they need USA money to do it.
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Agreed. Also, labor costs are lower in China vs Latin America and the labor force is much larger. This is why you first saw the maquiladoras in Mexico and much of that manufacturing shifted to China.
Of course with all of the geo-political, supply chain and other problems that have come about over the past couple years (and accelerated with COVID), I think near shoring will become much more prevalent. Mexico is large and close, but other markets in Latin America will serve similar needs, such as Brazil, Colombia, Panama and Costa Rica.
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