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ArtikelMoving Back to America; Multinational Manufacturers  
Oleh: [s.n]
Jenis: Article from Bulletin/Magazine
Dalam koleksi: The Economist (http://search.proquest.com/) vol. 399 no. 8733 (May 2011), page 65-66.
Topik: Multinational Corporations; Manufacturers; Arbitrage
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Isi artikelLabour arbitrage--taking advantage of lower wages abroad, especially in poor countries--has never been the only force pushing multinationals to locate offshore, but it has certainly played a big part. Now, however, as emerging economies boom, wages there are rising. Pay for factory workers in China, for example, soared by 69% between 2005 and 2010. So the gains from labour arbitrage are starting to shrink, in some cases to the point of irrelevance, according to a new study by the Boston Consulting Group (BCG). Sometime around 2015, manufacturers will be indifferent between locating in America or China for production for consumption in America," saysSometime around 2015, manufacturers will be indifferent between locating in America or China for production for consumption in America," says Hal Sirkin of BCG. That calculation assumes that wage growth will continue at around 17% a year in China but remain relatively slow in America, and that productivity growth will continue on current trends in both countries. It also assumes a modest appreciation of the yuan against the dollar. Even if wages in China explode, some multinationals will find it hard to bring many jobs back to America. In some areas, such as consumer electronics, America no longer has the necessary supplier base or infrastructure. Firms did not realise when they shifted operations to low-wage countries that some moves would be almost irreversible.
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