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07/27/2007: "Outsourcing makes temporary profit, long-term losses"

She immediately cranked up production fivefold and saw her profit margin double. Then the problems started. The clasps on her life jackets were breaking, the shipments were late, her contact in China was unresponsive. McCrocklin's patience finally expired when she opened a container of 3,000 leashes-all defective. "The colors were completely reversed, and the logos were all upside down," she says. The factory would not make good on the order, and McCrocklin didn't want her clients, retailers and online stores, to see the shoddy work. "I'm not sure if I'll ever be able to sell these," she says. A bad batch of leashes may seem trivial compared with the potentially deadly output of Chinese factories that has paraded across the headlines-including 1.5 million toy trains coated with lead paint and 60 million containers of toxic pet food. In July the Food and Drug Administration banned shrimp and four species of contaminated farm-raised fish from China.

[ Of course -- you're ripping someone else off. Don't expect good quality labor as corners are being cut so much you're looking at a circle, which if you think it resembles a hole, might be correct. ]

http://money.cnn.com/2007/07/26/magazines/fsb/china_sourcing.fsb/index.htm?cnn=yes