An excerpt from, "Why is China Cheaper?"
Most people would say the answer is obvious -- lower wages in China compared to the United States. However, that answer is only partially true. Why? Because labor is only one part of the total cost of a product, and in many cases it's as low as 20% of the total cost.And the winner of the product -- frisbee or stuffed toy animal -- made the cheapest in China is ...Let's compare two simple products that are primarily made in China: a stuffed toy animal for a baby and a Frisbee.