Is effectively reducing production costs a driving force for the shift Research Paper

Is effectively reducing production costs a driving force for the shift of Manufacturing from China to the USA - Research Paper Example Examples of these costs are labor cost, transportation costs and supply chain risks. Increase in the cost of production has made the businesses to move near to their customers or moving back home where the production costs will be lower (Shephard, pg.67). There are numerous specific drivers which may be either external or internal to china and which are forcing manufactures to seek another production locations; the major one is the increasing competition for talents and labor costs. The biggest advantage for china was that it had cheap labor though that benefit is dwindling. So the increase in labor costs has become a major challenge for the companies which are operating in china these is because every fast growing and foreign company in china are all competing for employees who are qualified mainly those employees who have skills thus making it difficult for business to entice and maintain top talents. The increase in labor costs has reduced profits of the manufacturers significantly (Janoski and Darina, pg 115). There are also other costs which have increased too. The costs of real estates have increased nearly at manic rates due to the government institutions which have delegated minimum land charges. Other factors like electricity costs has also increased and the rate of corporate tax has raised to 25% from 15%, also the tax associated incentives has disappeared or it has not been easy to obtain. Increase cost of these inputs of production has made it difficult for the businesses to operate in china which has decreased the profits. The other cost which is related to production of manufacturers in china is the risk which is associated with the protection of intellectual property. Foreign companies which have been operating in china have been in worry of guarding their intellectual property despite the significant attention it has been receiving only a

Who can enforce the articles of association Essay

Who can enforce the articles of association - Essay Example This sort of contract (statutory contract) has certain features distinct from an ordinary contract. These features were explained by the Court of Appeal in Bratton Seymore Service Co Ltd v Oxborough. These features include: i. Origin. The contract being a statutory one originates from the statute instead of an agreement between the parties. By virtue of the fact that it is statutory, it cannot be invalidated on grounds of misrepresentation, mistake, undue influence or duress. iii. Ammendment. The contract can only be amended by a special majority. This means that only a minimum of three-quarters of the members are required to vote in favor of the resolution. This is encapsulated under Sec. 21. With the contracts characterized by the above features the question of enforcement becomes a major issue mainly because of the last feature- Rights. Not all members of the company have the right to enforce rights contained in the articles. So this raises the question- who has such rights? The enforcement of statutory contracts has been the subject of constant academic debates due to contradictory case law. This will be illustrated by two cases. The following two cases illustrate the complexities that arise when a member tries to enforce a company’s articles. In this case, the articles contained a clause stating that a certain member would be appointed as the company’s solicitor. This member was not appointed as such and proceeded to unsuccessfully sue the company for breach. The court held that the member could not sue simply because there was no contractual relationship between a member as solicitor and the company. The company’s articles of association contained a clause stating that ‘no resolution of directors on certain matters would be valid if either of two named managing directors voted against the resolution’. The plaintiff was one of the managing directors and he voted against this resolution but the company