First try
...s in China can be better trained and sourcing in China will become cheaper and the risks involved with sourcing in China can be decreased gradually by training the workers. So, the company should invest in training the workers in China in the long run while sourcing in Hong Kong in the short run and gradually move to China from Hong Kong. Although Obermeyer invested in a new facility in China, there were still concerns about the quality and reliability of Chinese operations. Chinas labor is also much lower than Hong Kong. The price of producing a variety of styles in Hong Kong would be lesser then producing in China. As mentioned earlier in the paper Hong Kong workers were trained in many different facets of production whereas China's worker were trained in one specific area of production. The price of training and increasing the amount of workers would far exceed Obermeyers input cost. The backbone of Obermeyer's sales is the parkas. It would be in their best interest to produce all the parkas in China were profit would be maximized. The Hong Kong factories should be used to produce the different s...