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    Q1. Why Fuyao Build Factory in Ohio?

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    Rayan Hafeez
    Fuyao built a factory in Ohio because it was more cost effective than manufacturing in China and shipping to the US due to higher labor costs in China and tariffs imposed on imported Chinese goods. While labor costs are higher in the US, there are no international shipping fees or tariffs, making Ohio a relatively cheaper place to produce goods for the US market. The documentary American Factory shows how Fuyao's decision to open a plant in Ohio provided jobs for a struggling former GM town and was an unusual case of capital flowing in the other direction from China to the US for manufacturing.

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    Q1. Why Fuyao Build Factory in Ohio?

    Uploaded by

    Rayan Hafeez
    138 views2 pages
    Fuyao built a factory in Ohio because it was more cost effective than manufacturing in China and shipping to the US due to higher labor costs in China and tariffs imposed on imported Chinese goods. While labor costs are higher in the US, there are no international shipping fees or tariffs, making Ohio a relatively cheaper place to produce goods for the US market. The documentary American Factory shows how Fuyao's decision to open a plant in Ohio provided jobs for a struggling former GM town and was an unusual case of capital flowing in the other direction from China to the US for manufacturing.

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    Fuyao.docx

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    Fuyao built a factory in Ohio because it was more cost effective than manufacturing in China and shipping to the US due to higher labor costs in China and tariffs imposed on imported Chinese goods. While labor costs are higher in the US, there are no international shipping fees or tariffs, making Ohio a relatively cheaper place to produce goods for the US market. The documentary American Factory shows how Fuyao's decision to open a plant in Ohio provided jobs for a struggling former GM town and was an unusual case of capital flowing in the other direction from China to the US for manufacturing.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    138 views2 pages

    Q1. Why Fuyao Build Factory in Ohio?

    Uploaded by

    Rayan Hafeez
    Fuyao built a factory in Ohio because it was more cost effective than manufacturing in China and shipping to the US due to higher labor costs in China and tariffs imposed on imported Chinese goods. While labor costs are higher in the US, there are no international shipping fees or tariffs, making Ohio a relatively cheaper place to produce goods for the US market. The documentary American Factory shows how Fuyao's decision to open a plant in Ohio provided jobs for a struggling former GM town and was an unusual case of capital flowing in the other direction from China to the US for manufacturing.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    Q1. Why Fuyao build factory in Ohio?

    They did a cost comparison.

    Since the labour in China is so inexpensive it makes its glass product well
    under budget then you have to add the costs of shipping and the tariffs
    that go with it that make their products much more expensive. So they got
    a price per unit and compared it to the costs of making and selling it in
    the US.

    In the US the cost of producing the product is much more as the labour
    force gets paid much more but there is no international shipping costs or
    tariffs to be paid. So putting a plant in Ohio more cost effective.

    It is always about making money. Right now it’s more cost effective to
    make in in the US for US consumption.

    Q2. Does American manufacturing really cheaper than that in


    China?

    Answer- That seems to be the general consensus amongst many private


    label sellers. But is Chinese manufacturing as affordable as it used to be?
    I recently paid a visit to Patriot moulding, a US-based plastic injection
    moulding manufacturer, to learn more about the cost of manufacturing
    products made in America. My perceptions about manufacturing changed
    greatly and led me to research current trends and practices.

    Q3. Does Fuyao case have general application to other companies (in
    China, or in your country)?

    Answer- Fuyao Glass Industry Group Co., Ltd. Produces float glass,
    automobile glass and construction glass. This gives them the opportunity
    to work with large companies like Ford, General Motors, Subaru and
    Volkswagen. In China these companies have quite a prominent presence
    as we see automobiles from Volkswagen and Ford quite frequently.
    Although Subaru doesn’t have that big of a presence in China, companies
    like General Motors, that specialize in automobile parts are quite a few
    there. The ones Fuyao does business with will buy typically bulk buy
    automobile glass from them. So that is where Fuyao has its biggest
    applications in China.
    In my country however, we export sheet glass and construction glass in
    large quantities as what we produce is not enough for our needs. Fuyao is
    but one of the companies we buy these from. The sheet glass is used for
    furniture and windows while the construction glass is used for much
    larger projects like doors and sliding panels. So, yes, we do have some
    application for Fuyao glass in our country as well.

    Q4. What do we learn in this film?

    Answer- To comprehend the monetary changes that have cleared the U.S.
    for as far back as two decades would take a greater interest in time and
    study than the normal individual can oversee. Be that as it may, for a brief
    glance at the fundamental subjects, you could do more terrible than to just
    watch the two-hour Netflix narrative "American Factory."

    Created by an organization established by Barack and Michelle Obama,


    "American Factory" recounts to the tale of a Chinese-occupied glass
    industrial facility in a suburb of Dayton, Ohio. Shaken by the conclusion
    of a General Motors plant during the Great Recession, Moraine, Ohio, is
    simply one more failing Rust Belt town. So when Fuyao Glass Industry
    Group Co., one of the world's biggest car glass producers, chose to open a
    plant there in 2014 on the site of the old GM manufacturing plant, the
    town greets it wholeheartedly.

    This is really the opposite of the standard monetary connection between


    America & China. Despite the fact that cash will in general stream from
    China to the U.S. on net, a large portion of this reflects Chinese
    government acquisition of U.S. securities; with regards to building
    processing plants, it's normally American and other worldwide
    organizations attempting to exploit low Chinese work expenses and
    access the promising Chinese market. Be that as it may, Cao Dewang,
    Fuyao's rich organizer, chooses to make glass in the U.S. for reasons of
    his own.

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