"Shoe Industry under Pressure Amid Rising Costs " Rising costs have forced about 15 per cent of shoe manufacturers in a major south China industrial centre to shut down or relocate in the past year... [the firms have] identified rising wages as a key factor behind the closures and relocations from Dongguan...The problems in the footwear industry reflect broader issues affecting manufacturers across China's Pearl River Delta..."
Www)ft.com, 2/26/2008
As the same pressures affect other industries across China, we expect to see

Question

Quizplus · Accepted Answer

Cost-push inflation occurs when increasing production costs, such as rising wages, lead to higher prices for goods and services, as described in the scenario.

"Shoe Industry Under Pressure Amid Rising Costs " Rising Costs