Good Morning Vietnam

June 8, 2010 -

Is China declining as an affordable manufacturing solution for companies like Apple, Nokia, Microsoft, Sony, Nintendo and more? Not quite yet, but as the Chinese government, and corporations like Foxconn are forced to raise wages, the bottom line for foreign companies may get smaller and smaller. The bottom line rules the universe. Consumers could feel it at the checkout line or corporations will take serious steps to keep manufacturing costs down. 

The New York Times and Wall Street Journal predict a future where the Apple's of the world exit China for newer, cheaper labor markets like Vietnam, India and Indonesia. Some say that discussions about such moves are already underway. Foxconn, faced with a string of suicides and controversies surrounding the general well-being of its massive workforce, has raised the pay of its employees twice this year and cities like Beijing plan to raise those wages even more. Even more alarming for foreign companies doing business in China is a movement by the government to give workers more rights.

Naturally, this scares corporations who see the evaporation of a market that served them well, and saved them a lot of costs. Add to that Inflation within China and a projected increase in its currency value, and it is the perfect storm for companies to get the hell out. Naturally higher costs for a company like Apple may lead to higher prices for that iPhone or iPad at retail if the labor situation in China is seriously reformed.

Source: Engadget

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Re: Good Morning Vietnam

They will just continually move to new poor countries.  As those countries become rich from all the work and labor prices go up, they will again move to the next poor country.  There's certainly a bunch of them available.

 
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Infophile@Goth: If you're not willing to entertain the idea you might be wrong, fine. That's your right. But why should anyone else entertain the idea that you might be right? If they go by the same logic, they already know you're wrong, so why listen to you?07/02/2015 - 3:53am
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Mattsworknamefind offensive or disturbing, and that mindset leads to censorship. It's all well and good to say "This would be better IF", just so long as we remember not to let it slide into "This is offensive, REMOVE IT". IE , the current issues surroundign the07/01/2015 - 11:19pm
MattsworknameAndrew and goth both have points, and to that point, I'll say. Saying somethign is improved by changing something isn't a problem, on that I agree with , but at the same time, on of the issues we have in our society is that we want to simply remove things07/01/2015 - 11:18pm
Andrew EisenSee? Suggestions for improvements that involve taking things away do not mean the work is garbage or performing poorly, critically or commercially.07/01/2015 - 9:29pm
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Andrew EisenI'll give you an example: Arkham Knight is a ton of fun but the tank sucks and the game would be even better without it.07/01/2015 - 9:23pm
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