Principles of Supply Chain Management, Second Edition, 2nd Edition

355Reverse Supply Chains

Transportation costs: Moving the product made in Asia back to the home country such

as the United States adds to the total cost of making the product. Rising fuel costs have

made transportation costs rise (Ellram et al. 2013).

Theft of intellectual property: Companies operating in China must have a majority part-

ner from the Chinese side. These partnerships involve the exchange of technologies

and processes, some of which have been pirated (Navarro 2013).

Labor wages increasing in Asia: Although low wage rates attracted the rst major wave of

outsourcing to Asia in the 1990s, wages are now rising in China (Moser 2013).

Public relations problems: Companies that have suppliers in Asia have often been the tar-

get of public ...