evidence: We have updated the BCG Global Manufacturing Cost Competitiveness Index, which benchmarks costs in 38 leading export manufacturing nations against those of the US, to reflect the cost of manufacturing a product and bringing it from the factory to its end market. (See Exhibit 4.) In addition to accounting for productivity-adjusted labor costs and energy prices, we have included transportation costs to the US, machinery depreciation, and tariffs. For goods imported into the US from China, the cost-competitiveness index also factors in the costs of trade-war tariffs imposed by the US on Chinese-made products. [...] Despite its rising labor costs, China remains competitive, thanks to its current workforce availability, extensive supplier base, logistics infrastructure, and key role in certain industrial value chains. Southeast Asia is highly cost competitive, but it is far from North America and Europe, labor availability can be challenging, and sustainability is a concern. India’s logistics infrastructure is unevenly developed, its environmental sustainability can be weak, and it has fewer free-trade agreements with nations other than the members of ASEAN. India is very cost competitive, however, and it has recently negotiated trade deals with Australia and the United Arab Emirates. Although India is just starting to emerge as a major exporter, it has a broad manufacturing base that supplies everything from electric vehicles and heavy machinery to chemicals and appliances for its domestic market.