2/12/2005

China

China is causing major problems with the Amercian business. The United States must find ways to compete with China or learn to go with the flow of what is happening to America. China is dominating low cost production in many products.http://www.businessweek.com/magazine/content/04_49/b3911401.htm

The Chinese are selling their products anywhere from 30 to 50 percent less than what Americans can produce the same product. This is causing many American businesses to go out of business. However, these business men say that consumers would be smart to buy the Chinese products over their own because of high quality and low price.

China's work force is thriving on low wages all across the board, while the workers are putting in 12 hour days and working weekends. China is also set up to produce economies of scale in its domestic market.

Another big boost for China is the young students who perform in areas needed for the economy to continue to grow stronger. Students are studying engineering, business, math, and science much more than any other country, especially America. the future is bright for the Chinese people and they are willing to do what it takes to be successful.

3 comments:

scott said...

Analysts say that the emergence of Chinese competition will have one of the greatest influences on the world economy in the 21st century. There are a lot of people there. Once their economy gets rolling it may be second only to the United States.

Marie said...

I think that it is going to be hard for Americans to stay competitive. I think one of the main reasons is because Americans are not well studied in ares of math and science, and the over all population in the United States is failing to find ways to beat other countries on price. Too many workers want higher pay even if that means their factory will shut down and move somewhere else. Over all I feel that American products aren't made well but demand a higher price for the goods. Scott make a good point.

Diane said...

China is and I dare say will always be more competitive than America with regards to manufacturing. Americans will not except the low wages and longer working hours of the Chinese workers. It is the right of the consumer to buy foreign. China has the comparative advantage in manufacturing. America has a comparative advantage in the service industry. There is great opportunity to take advantage of this.
America must make changes to the education system to continue to have the advantage in the service industry.