By
www.ProfitableInvestingTips.com
American Profit
from Made in
China
http://www.profitableinvestingtips.com/investing-
tips/american-profit-from-made-in-china
On this website we often take a ...
http://www.profitableinvestingtips.com/investing-
tips/american-profit-from-made-in-china
An interesting international inv...
Before We Continue…
Click the links below to get your
FREE training materials.
Free Weekly Investing Webinars
Don’t miss t...
http://www.profitableinvestingtips.com/investing-
tips/american-profit-from-made-in-china
The point of this strategy is no...
http://www.profitableinvestingtips.com/investing-
tips/american-profit-from-made-in-china
There is fact a handsome America...
http://www.profitableinvestingtips.com/investing-
tips/american-profit-from-made-in-china
In fact, if American companies d...
http://www.profitableinvestingtips.com/investing-
tips/american-profit-from-made-in-china
The San Francisco Federal Reserv...
http://www.profitableinvestingtips.com/investing-
tips/american-profit-from-made-in-china
Goods and services from China
ac...
http://www.profitableinvestingtips.com/investing-
tips/american-profit-from-made-in-china
If you want to pursue an America...
http://www.profitableinvestingtips.com/investing-
tips/american-profit-from-made-in-china
Goods Made in China need to be
t...
http://www.profitableinvestingtips.com/investing-
tips/american-profit-from-made-in-china
Companies that design and
manufa...
http://www.profitableinvestingtips.com/investing-
tips/american-profit-from-made-in-china
Apple as an
Example
http://www.profitableinvestingtips.com/investing-
tips/american-profit-from-made-in-china
A $650 iPhone made in China requ...
http://www.profitableinvestingtips.com/investing-
tips/american-profit-from-made-in-china
About $10 worth of parts comes f...
http://www.profitableinvestingtips.com/investing-
tips/american-profit-from-made-in-china
The Chinese manufacturer makes
a...
http://www.profitableinvestingtips.com/investing-
tips/american-profit-from-made-in-china
That leaves about $425 to be div...
http://www.profitableinvestingtips.com/investing-
tips/american-profit-from-made-in-china
(An argument made for moving
man...
http://www.profitableinvestingtips.com/investing-
tips/american-profit-from-made-in-china
Think of having $160 in parts fr...
http://www.profitableinvestingtips.com/investing-
tips/american-profit-from-made-in-china
Rising Labor Costs
in China
http://www.profitableinvestingtips.com/investing-
tips/american-profit-from-made-in-china
An argument for moving productio...
http://www.profitableinvestingtips.com/investing-
tips/american-profit-from-made-in-china
To the extent that this eats int...
http://www.profitableinvestingtips.com/investing-
tips/american-profit-from-made-in-china
If you are interested in your ow...
http://www.profitableinvestingtips.com/investing-
tips/american-profit-from-made-in-china
How stable are labor prices in C...
http://www.profitableinvestingtips.com/investing-
tips/american-profit-from-made-in-china
Will the need to maintain politi...
http://www.profitableinvestingtips.com/investing-
tips/american-profit-from-made-in-china
What if the ever-suspected housi...
http://www.profitableinvestingtips.com/investing-
tips/american-profit-from-made-in-china
Will the cost of production fall...
http://www.profitableinvestingtips.com/investing-
tips/american-profit-from-made-in-china
Imagine a totally revamped China...
http://www.profitableinvestingtips.com/investing-
tips/american-profit-from-made-in-china
Now consider what would happen t...
American Profit from Made in China
Upcoming SlideShare
Loading in...5
×

American Profit from Made in China

141

Published on

http://www.profitableinvestingtips.com/investing-tips/american-profit-from-made-in-china

American Profit from Made in China

On this website we often take a look at offshore investing opportunities. An interesting international investment strategy is to stay home and invest in companies that have their goods manufactured in China. The point of this strategy is not just to profit from the low cost of Chinese labor and to run up the United States trade deficit with China. There is fact a handsome American profit from Made in China. In fact, if American companies decide to move manufacturing back to this hemisphere to Mexico, for example, it will be because they can increase the portion of Made in the USA parts in their products, design work, transport and marketing before importing them back into the USA. The San Francisco Federal Reserve published a study in 2011 looking at the U.S. Content of Made in China.

Goods and services from China accounted for only 2.7% of U.S. personal consumption expenditures in 2010, of which less than half reflected the actual costs of Chinese imports. The rest went to U.S. businesses and workers transporting, selling, and marketing goods carrying the “Made in China” label.

If you want to pursue an American profit from Made in China, just where should you invest? Goods Made in China need to be transported back to the USA for sale. Shipping companies, companies that handle logistics, companies that design products, marketers and retailers all get a piece of the action from products Made in China. Companies that design and manufacture high tech parts that are sent to China for assembly into finished products benefit especially from the Made in China scenario.

Apple as an Example

A $650 iPhone made in China requires about $170 in parts which are manufactured in the USA, Germany, Korea, Japan and other countries. About $10 worth of parts comes from the USA. The Chinese manufacturer makes around $6.50 for putting together the pieces, boxing them up and sending a finished product out the door. Apple does not pay $650 but rather around $225. That leaves about $425 to be divided up for transportation, marketing, retail sales, etc. (An argument made for moving manufacturing of products to Mexico is that a larger portion of internal parts could be from the USA.) Think of having $160 in parst from the USA instead of $10 for the iPhone example.

Rising Labor Costs in China

An argument for moving production to the Western Hemisphere, especially Mexico is that the cost of Chinese labor has been going up dramatically.

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
141
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
3
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

American Profit from Made in China

  1. 1. By www.ProfitableInvestingTips.com American Profit from Made in China
  2. 2. http://www.profitableinvestingtips.com/investing- tips/american-profit-from-made-in-china On this website we often take a look at offshore investing opportunities.
  3. 3. http://www.profitableinvestingtips.com/investing- tips/american-profit-from-made-in-china An interesting international investment strategy is to stay home and invest in companies that have their goods manufactured in China.
  4. 4. Before We Continue… Click the links below to get your FREE training materials. Free Weekly Investing Webinars Don’t miss these free training events! http://www.profitableinvestingtips.com/free-webinar Forex Conspiracy Report Read every word of this report! http://www.forexconspiracyreport.com
  5. 5. http://www.profitableinvestingtips.com/investing- tips/american-profit-from-made-in-china The point of this strategy is not just to profit from the low cost of Chinese labor and to run up the United States trade deficit with China.
  6. 6. http://www.profitableinvestingtips.com/investing- tips/american-profit-from-made-in-china There is fact a handsome American profit from Made in China.
  7. 7. http://www.profitableinvestingtips.com/investing- tips/american-profit-from-made-in-china In fact, if American companies decide to move manufacturing back to this hemisphere to Mexico, for example, it will be because they can increase the portion of Made in the USA parts in their products, design work, transport and marketing before importing them back into the USA.
  8. 8. http://www.profitableinvestingtips.com/investing- tips/american-profit-from-made-in-china The San Francisco Federal Reserve published a study in 2011 looking at the U.S. Content of Made in China.
  9. 9. http://www.profitableinvestingtips.com/investing- tips/american-profit-from-made-in-china Goods and services from China accounted for only 2.7% of U.S. personal consumption expenditures in 2010, of which less than half reflected the actual costs of Chinese imports. The rest went to U.S. businesses and workers transporting, selling, and marketing goods carrying the “Made in China” label.
  10. 10. http://www.profitableinvestingtips.com/investing- tips/american-profit-from-made-in-china If you want to pursue an American profit from Made in China, just where should you invest?
  11. 11. http://www.profitableinvestingtips.com/investing- tips/american-profit-from-made-in-china Goods Made in China need to be transported back to the USA for sale.
  12. 12. http://www.profitableinvestingtips.com/investing- tips/american-profit-from-made-in-china Shipping companies, companies that handle logistics, companies that design products, marketers and retailers all get a piece of the action from products Made in China.
  13. 13. http://www.profitableinvestingtips.com/investing- tips/american-profit-from-made-in-china Companies that design and manufacture high tech parts that are sent to China for assembly into finished products benefit especially from the Made in China scenario.
  14. 14. http://www.profitableinvestingtips.com/investing- tips/american-profit-from-made-in-china Apple as an Example
  15. 15. http://www.profitableinvestingtips.com/investing- tips/american-profit-from-made-in-china A $650 iPhone made in China requires about $170 in parts which are manufactured in the USA, Germany, Korea, Japan and other countries.
  16. 16. http://www.profitableinvestingtips.com/investing- tips/american-profit-from-made-in-china About $10 worth of parts comes from the USA.
  17. 17. http://www.profitableinvestingtips.com/investing- tips/american-profit-from-made-in-china The Chinese manufacturer makes around $6.50 for putting together the pieces, boxing them up and sending a finished product out the door. Apple does not pay $650 but rather around $225.
  18. 18. http://www.profitableinvestingtips.com/investing- tips/american-profit-from-made-in-china That leaves about $425 to be divided up for transportation, marketing, retail sales, etc.
  19. 19. http://www.profitableinvestingtips.com/investing- tips/american-profit-from-made-in-china (An argument made for moving manufacturing of products to Mexico is that a larger portion of internal parts could be from the USA.)
  20. 20. http://www.profitableinvestingtips.com/investing- tips/american-profit-from-made-in-china Think of having $160 in parts from the USA instead of $10 for the iPhone example.
  21. 21. http://www.profitableinvestingtips.com/investing- tips/american-profit-from-made-in-china Rising Labor Costs in China
  22. 22. http://www.profitableinvestingtips.com/investing- tips/american-profit-from-made-in-china An argument for moving production to the Western Hemisphere, especially Mexico, is that the cost of Chinese labor has been going up dramatically.
  23. 23. http://www.profitableinvestingtips.com/investing- tips/american-profit-from-made-in-china To the extent that this eats into American profit from Made in China products it may drive production out of China to countries where labor remains cheap.
  24. 24. http://www.profitableinvestingtips.com/investing- tips/american-profit-from-made-in-china If you are interested in your own share of the American profit from Made in China you need to do your own analysis of the intrinsic value of overseas investments.
  25. 25. http://www.profitableinvestingtips.com/investing- tips/american-profit-from-made-in-china How stable are labor prices in China?
  26. 26. http://www.profitableinvestingtips.com/investing- tips/american-profit-from-made-in-china Will the need to maintain political control in China force the powers that be to continually raise wages to keep the populace happy?
  27. 27. http://www.profitableinvestingtips.com/investing- tips/american-profit-from-made-in-china What if the ever-suspected housing bubble collapse actually happens?
  28. 28. http://www.profitableinvestingtips.com/investing- tips/american-profit-from-made-in-china Will the cost of production fall or will it rise?
  29. 29. http://www.profitableinvestingtips.com/investing- tips/american-profit-from-made-in-china Imagine a totally revamped China with a democratic government and strong labor unions.
  30. 30. http://www.profitableinvestingtips.com/investing- tips/american-profit-from-made-in-china Now consider what would happen to your share of the American profit from Made in China.

×