Daniel argues that multinationals have no option but to outsource more production to China to compete globally.
More production means more goods and services must compete for your dollars.
Young companies that were entering mass production of their technologies in order to compete effectively with larger rivals went bust, including Solyndra and Abound Solar.
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He thinks electric cars will compete without subsidies against conventional cars only when production reaches about 500, 000 per model.
Those restrictions raise the costs of production for the downstream firms, weakening their capacity to compete with foreign producers in the United States and abroad.
Apple suppliers have reportedly began production on parts for a smaller tablet that will likely compete with the lower-cost, smaller tablets from the likes of Amazon (NASDAQ:AMZN), Samsung, and others.
Once those technologies (or more accurately, their mass production techniques) become sufficiently commoditized, Apple is then able to compete effectively on cost and undercut rivals.
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Domestic producers realize that the only way to compete and offer their customers variety is to source at least some production from abroad.
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Can you really compete in critical areas like medical technology if China and India decide to ramp up their production?
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To compete in a globally connected world, companies must leverage technology and automation in order to gain production efficiency and repeatable quality.
For smaller, privately held companies, the trend to move production back to the U.S. from China could eventually put some pressure on wages, as more companies compete for skilled workers, McPeak said.
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