, () 200 . 20 ( Manufacturers from advanced countries are becoming less enthusiastic about build ing factories overseas.

ld ing factories overseas. Many are bringing production back home or building new f actories at home. American companies like GE, Caterpillar, Ford, Whirlpool and N CR have closed factories in China and brought production back to the U.S. Japane se firms like Fuji Xerox and FDK have left China and returned home or are planni ng to do so. They say conditions are much better at home than in China, where wa ges are soaring while productivity remains low. The trend is becoming increasingly pronounced as rich countries are making it th eir strategic goal to strengthen their manufacturing competitiveness to create j obs and increase exports. Countries like the US, the UK and Japan are not only p roviding tax breaks for returning manufacturers but also racing to cut corporate taxes. South Korean companies now employ more than two million workers overseas, which is a result of the hollowing out of the countrys manufacturing sector over the pas t two decades. The problem is that companies prefer moving abroad even when the same investments can be made in the country.