Anyone remember this post where I mentioned a talk about how it’s going to be more expensive to produce in china than domestically? Well, it came true (although not for any of the same reasons so maybe my assertion that I don’t agree with the model was still correct):
Thanks to rising fuel prices and wage inflation in China, it’s actually more expensive to manufacture and ship electronics across the Pacific for the American market than it would be to produce them domestically, according to a report from The McKinsey Quarterly.
I don’t think that the BCG talk mentioned anything about rising fuel prices and wage inflation but was all about networks (social and technilogical) as well as channel saturation.