Name: Mohammad Imran Hossain Khandaker

Id: 2018511080043
IBM (spring 2018)
Assignment 3

Q 1.why Fuyao Build factory in Ohio?

I think Fuyao build factory in Ohio because
1. Labor cost rise in China
2.. To be closer to the U.S. supply chain and automotive customers.
3. Closer to consumer markets
4. Captive and trained workforce.
5. Avoiding taxes etc.
6. They could do so with a lower initial overhead structure (salaries-$14 hr.). There was an attempt to
organize but it was voted down
7. Beneficial tax treatment.
8. There were available assets - Plant Property and Equipment requiring only moderate re-start investment
(but later many functions were automated).

Q 2. Does American manufacturing really cheaper than that in china?

from my personal opinion I don’t think so, American manufacturing isn’t really that much cheaper than in
China. I am writing the reason below in here
Low labor cost
labor cost in China is not so high as it is in the US. Most of the chines people go from villages to big
cities in search of work and they don’t ask for much money, And they don’t argue with the Sealey.
Large scale manufacturing.
Chinese produce tons of goods every day and due to this, their price is cheaper, even if you order a
custom design. Still, everything depends on the minimum order quantity, some manufacturers have MOQ
of 10K items or even more. The cost may vary depending on this factory

Reduced supply chain costs

manufacturing and distributing in the same region reduce shipping costs and helps mitigate against
complicated and time-consuming supply chains.
Specialization
Since each organization makes just their scope of items, for example, a spring producer just makes
springs, they center around more volume for that item, which gives them influence to deal on crude
material expenses.

No currency fluctuations
US currency has been very stable and most times represents the largest consumer base.

Quality
Good or terrible, numerous organizations are happy to drop the quality or supplant segments with a less
expensive choice to save money on costs. In the event that you look at costs, you ought to likewise think
about quality. Usually, tests are acceptable and creation is made somewhat less expensive.

over 200,000+ foreign companies went to set up in China and they did that because labor was far cheaper
which allowed those companies to make massive profits.

Today wages in China are rising and some companies are leaving because there are places like India,
Pakistan, Vietnam etc. with lower cost structures now. However, wages in China are still far lower than
those in the US.

Q.3 Does Fuyao case has general application to other companies (in China, or in your country)?
If I specifically talk about my country then it has no general application. Fuyao case is all about how they
dealt with the UAW. But, form my country’s perspective there’s no need to deal with this type of
organization or union. Cause, like this type of things, has literally no existence in my country.

Q 4. What do we learn in this film?

American Factory is a really well-made documentary; it’s quite unique in being in an English-language
film that shows the perspective of Chinese as well as American workers.
On an individual level, it shows Chinese and Americans happily getting along and learning about each
other’s cultures—Americans learn Mandarin and participate in Chinese variety shows; Chinese workers
learn from Americans how to shoot and fish and eventually bring their families over to Ohio.

However, the film itself is primarily driven by conflict between American workers and the mostly
Chinese management, especially with regards to unionization. Although Fuyao management seems to
know, on paper, the cultural differences they will face , it takes working together both Americans and
Chinese to realize the depth of this culture clash Americans cannot comprehend how Chinese workers put
up with their hours and working conditions and feel disrespected by an impersonal management style,
Chinese management are frustrated by the American workers inefficiency and comparative idleness.
Chinese and Americans have differing expectations on things as simple as whether or not to work
weekends.
I also Learnings from the documentary film here is the key points
1. Make an entry into the market
2. Human interactions
3. How cultural difference can affect a company
4. Labor unions role should or should not be
5. How cooperation’s can bring something good.