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M$1.00  Funded By Mahalo ? |  March 21, 2009 12:54 PM

Are Chinese products so cheap they are recession proof?

What Chinese products are recession proof?

How much product margain cost is there between the retailer cost and the manufacturer cost?
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March 21, 2009 09:51 PM
Are Chinese products so cheap they are recession proof?
Well yes- up until the point that America's products become cheaper to consume. (Or until we realize that we don't exactly enjoy lead in our toys.)

What Chinese products are recession proof? Health products made in China might be recession proof. It doesn't matter how bad the recession gets, people will continue to shell out money for health care. Of course if we go into a depression that might not be the case for very long.

How much product marginal cost is there between the retailer cost and the manufacturer cost?

Wow that totally depends on what specific product you are talking about. And it also depends from a day to day basis.

But if you're looking for a formula it would go something like this:
GDP (as defined by adding Consumption, investment, Government spending, and then of course, net exports minus net imports) minus the consumption of Natural resources.
Source(s):
Macroeconomics, 7th Edition
by Colander, David

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March 21, 2009 02:24 PM
Are Chinese products so cheap they are recession proof?

No. In a recession, consumers spend more time researching the products that they would like to buy. Consumers evaluate the true value of the product along with the upfront cost. (1)

What Chinese products are recession proof?

Other than the products that fill basic human requirements for life (food, water, shelter, warmth, etc), I don't think there are any products Chinese or not, that are recession proof.

How much product margin cost is there between the retailer cost and the manufacturer cost?

This depends on a number of factors. The largest of which is exactly what product you're talking about. Some products have outrageous markups while others maintain consistently low margins. When considering profit margins, it's important to calculate the true cost of doing business.
Source(s):
(1) http://www.forbes.com/2008/02/14/unsolicited-advice-recession-oped_meb_0215...


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