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Moving inland means lower wages, but higher transportation costs on China's crowded highways and railroads.
WSJ: China's Rising Wages Propel Prices
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Moreover, as suggested above, transportation costs are much lower and delivery times far shorter when goods are made here.
FORBES: Move Over, Michigan, China Is The World's Next Rust Belt
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Hon Hai and other companies have moved some operations to countries such as Vietnam and Mexico, where costs for labor or transportation to end markets are lower.
WSJ: Hon Hai Confirms Employee Deaths
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With investments in high-speed transportation and communication infrastructures, the creative class should be persuaded to return to the periphery to enjoy lower housing costs and a higher quality of life, and contribute to a local economy that can then provide sustainable services.
ECONOMIST: Letters
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Shipping and transportation costs alone can make outsourcing prohibitively expensive, particularly if a company has a high-volume, lower-price product.
FORBES: Magazine Article