On a Global Stage: The World of International Management

But what’s interesting is that the enormous gap in labor costs notwithstanding, the difference in total costs between the Chinese and the American plants isn’t that great. In China, the total cost of producing a pair of shoes is about $3 less than in the United States, around 4 percent of the $75 price for the average pair of shoes. And that 4 percent is manageable, especially as U.S. production means that New Balance can fill orders and change styles more quickly than its competitors in North American markets.