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China’s Toy Recalls: The High Cost of Low Price?

  • Hari Bapuji

Abstract

A common assumption is that product recalls are directly related to low prices, that is, low-priced products are typically recalled because they lack quality. Several analysts argue that manufacturers in the developing world, particularly in China, habitually offer a low price and good samples in order to win contracts. After that point, however, these manufacturers change their specifications and substitute cheaper materials or generally compromise on quality. These arguments imply that suppliers in the developing world, particularly in China, are simply corrupt. Others, however, argue that suppliers compromise quality due to the ever-increasing pressure to supply goods at lower prices.

Keywords

Global Supply Chain Cost Pressure Product Recall Chinese Manufacturer Cheap Material 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Notes

  1. 1.
    CPSC, “CPSC, Firms Announce Swimming Pool Dive Stick Recall Because of Impalement Risk to Children,” June 24, 1999, http://www.cpsc.gov/cpscpub/prerel/prhtml10/10132.html.Google Scholar
  2. 2.
    CPSC,. “Weight Watchers Recalls Plush Hungry Figures and Magnets Due to Puncture Hazard,” August 20, 2009, http://www.cpsc.gov/cpscpub/prerel/prhtml09/09318.html.Google Scholar

Copyright information

© Hari Bapuji 2011

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  • Hari Bapuji

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