I was thinking more for the developed world market. If China has higher costs, then US manufacturers actually have a chance to sell their products in North America/Eurpoe. "And if they did have money, through higher wages producing goods they would not need our goods. They'd have plenty goods of their own." Invalid argument. America/Developed world had plenty of their own goods made right in the country, but that didn't keep us from buying crappy Asian goods. America will always have one advantage over China. The same thing that made Japan great. Quality Control. Japan beleives in it to one extreme, China to the opposite extreme, and Americans some where inbetween, closer to the Japanese. Chinese beleive it's the consumer's job to do this in the store, as they look at the products, so unless they learn, it's going to hurt them(it already is).
Back to markup. Reason I asked was I was in Car Quest asking about the price on a door handle for a truck. They said their regular warehouse didn't have it in stock, so they would check one of their other suppliers(more$$$) for a price. The screen was turned enough for me to see their cost of 22.xx and my cost of 39.95.(which was also my cost from their regular supplier) Other stores had retail prices as high as 56.xx I knew American prices were much lower, and had a hunch it was due to less markup due to high competition(rather than much lower prices, which is also a factor)
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