A price increase in the cost of creating goods in China is not even close to a one-to-one match for prices in the US. iPods are an extreme example. Of the $140+ retail price of an iPod, only $4 goes toward production costs in China. Doubling the cost will only add another $4 on the cost of an iPod.
While this will be less true of simple toys and the like, it is unlikely that a 30% increase in Chinese production costs will have any noticeable effect on TV's, coffee table books, stereos or the other items most often sourced from China.
Folks :
A price increase in the cost of creating goods in China is not even close to a one-to-one match for prices in the US. iPods are an extreme example. Of the $140+ retail price of an iPod, only $4 goes toward production costs in China. Doubling the cost will only add another $4 on the cost of an iPod.
While this will be less true of simple toys and the like, it is unlikely that a 30% increase in Chinese production costs will have any noticeable effect on TV's, coffee table books, stereos or the other items most often sourced from China.
From Budapest,
PE