They make items in bulk so they get their raw material somewhat at low prices.Moreover they focus on quantity and not on quality so their products are cheap
I would like to apologize my post make you miss understand, i just try to point out what their major problem, but not saying Indonesia not worth investing, if they can improve it, it would be better .... Even afghanistan have their own investor, BTW u heard abt PT K.Malindo Utama ?
many electronic goods from China are cheap. But they have low quality. i think it technology is nice and it has much man power so they make the products much and sell it in the international market.
I was based in China before. The reason china's goods cheap basically due to two reason 1. Good knowledge and technology 2. Low labour cost. Chinese people able to product cheap product because they have very good knowledge and able to replace the lower price material with the high cost material (that's why their product not so quality but cheap). And secondly is labour cost, it is cheap maybe due to the currency.
Because the Western nations force the Chinese Government to exploit their workers by paying them a pittance to produce goods under strict technical supervision and quality control so that the Western companies can make a huge profit by selling these goods at over 10 times whatever it costs. It is simply the old exploitation colonialist policies masquerading as independent capitalistic or free market enterprise. The sooner that exploitation of Third World labor is stopped, the better for civilized morality.
I don't know about all Chinese goods. But, i have heard that chinese (non-branded) mobile phones are very cheap. However, they never provide warranty on those products.
I guess 1st and 2nd reason is suitable for making cheap goods because Chinese is sell very low quality of products and Chinese goods is damage in very less time and his labors are work with very less amount of salary without any argument.
China also produce high quality and costly product. But people don't want to pay much for their goods. Cheap labor and excellence in technology are two main reasons that make them able to sell at lowest price.