Yearly China gathers a group of high-level
personnel to discuss emerging issues and find solutions. Last year over 200 high-level
stakeholders gathered. This year
they are expecting more. The
economist says, “It could create positive outcomes for China and for the entire
world. It could also mark a new era of greater, or new risks associated with
doing business in China. This is
super interesting because many of the questions that bro. Carpenter has brought
up in class are also being brought up in this conference, ‘what is going to
happen to us, and the rest of the world as China grows and becomes a powerhouse? Where are we going to get cheap labor, lets
face it, Americans like it cheap, and we hate price changes. My question is where and what is Wal-mart
going to do?
Robert Ostler
http://www.economistconferences.asia/event/ChinaSummit2012
Interesting post. I think it's one of those things where history will repeat itself. Manufacturing and other low-wage jobs will be exported to the country with the lowest competent labor force. If that means those factories and jobs leave China and head to India or Africa or South America, then that might be what happens. I suspect that with a population as massive as China, it would take some time for a shift of that magnitude to happen. Thus, in the short term, I would expect that prices on imports will simply go up as we begin to tap out the current cheap labor available.
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