Question

Chinese​ private-sector wages rose 14 percent in 2012. this trend in rapidly rising wage rates might hurt its manufacturing dominance. ​source: wall street journal​, may​ 17, 2013 explain the effect of the rising wage rates on the supply of manufactured goods. rising wage rates​ ________ .

Answer 1

Rising wage rates​ increase the cost of production​ and, with no change in​ productivity, China's supply of manufactured goods will decrease

Step-by-step explanation:

Rising wage rates increase the cost of production​ and, with no change in​ productivity, China's supply of manufactured goods will decrease.

Answer 2

Wages in china might have risen 14% in 2012 and probably continued to rise since then, but they are very low compared to western countries, which allowed them to become a manufacturing center, But at the same time, Chinese wages are very high compared to the wages in other southern Asian countries, specially India, Indonesia, Thailand, Vietnam, which are also considered manufacturing centers.

In countries with large and very poor populations, low wages represent low production costs. As wages increase, there will be a gap between western countries and China, but there will also be a gap between China and other Asian countries. As manufacturing costs increase in one country, many factories will be moved to other countries with lower manufacturing costs.