New Recruit
New Recruit
New Recruit
the labor cost is for engineers to design the system and technicians to keep it running, but mostly for management. That's it. I worked in a chemical plant before. Labor cost is not a constraint on process industries.
New Recruit
THE ADVANTAGE INDIA HAVE OVER CHINA IS THE LANGUAGE BARRIER THAT CHINA FACES.IN LONG TERM AND AFTER SOME YEARS IT WILL BECOME A DECIDING FACTOR IN THE RACE BETWEEN THE TWO ECONOMIES.So this is the difference between an engineer and an "economist".
So just answer some questions: JAPAN also had no resources besides labor. They only crossed the 3000 USD/capita threshhold in 1972. Yet what would you say about Japan today?
China imports most of its resources. We have iron ore and oil just sitting in the ground and the government refuses to dig it up, instead we spend our FOREX to buy it. What's that mean?
India has far lower labor rates than we do. But due to their inefficient infrastructure and bureaucracy, they'd have to pay NEGATIVE wages to make a product there profitable. Labor is about 15% of the added value of a product. China's advantage is clearly not in labor.
Wake up, it's the 21st century. Robots already do most of the work anyways. What, you think in heavy industry, people can actually lift 10000 ton parts? Or people can make ICs by hand? Or even textiles are made by hand?
China is heavy on production of process products such as steel (40% of world production) and chemical fiber (60% of world production). Process engineering is all automatic. It isn't even possible to make it not automatic. Where's the labor in that?
It doesn't matter what labor you have, other countries get sucked dry despite also having textile industries like China, only China's and otherly newly industrialized countries makes money. Textile industries in other countries import their chemical fiber because they lack the materials industry to support their textiles. In 2006, mainland China's textile industry was only 6% of exports, but was 5x as large as #2 Taiwan, 6x as large as #3 South Korea and #4 India. While textiles is seen as a "low wage" industry, in reality, its highly industrialized. It drove the industrial revolution 300 years ago, and its driving the same industrialization today. The machines needed for fiber and textile production are the constraints on production, not labor.
In the end, labor costs are nearly meaningless except for industries that are constrained by labor costs. These, however, are mostly service jobs that cannot be outsourced. Lowering costs for manufacturing are almost always due to capital investments into new machinery, especially for process industries that are fully automated.
Global-production.com - Textiles
Language barrier, just another reminder that indians worship their former colonizer. Just so you know, french was the official language for the league of nations, why, because french was much more accepted by Europeans at the time than English. Right now, english speaking countries are the most powerful, but if a non-english speaking country becomes the dominant power (say russia) then english is no longer a world language. Even as it is today, there is a thing called translator. Also, Japan never had completely tech advantage over US, only in some sectors and all those sectors are civilian which means that US is still by far the most advanced in military industry. If you google the plaza accord, you'll see how Japan submitted to USA due to their military and economical power. You also should keep in mind that there are US base in Japan.
The only thing you major in is inability to properly form coherent sentences. China has secured its resources through deals with Africa, Central Asia as well as Russia. In addition, it is the biggest investor in renewable energy development. As far as currency manipulation goes, you should take a closer look at the American Federal Reserve. Pot calling the cattle black.
