This article here talks about how PetroChina has overtaken Exxon-mobile as the biggest oil company in the world. China has had incredible market growth and is quickly becoming a force to be reckoned with.
How soon will "Made in China" be considered "Made in Japan" or "Made in America" for that matter? Once upon a time, Japanese manufactured items were cheap and the country to be 'used' by more modern and advanced countries to exploit. We have since moved to China, India, and others for this exploitation since Japan has evolved to be a market competitor (take Toyota for example). How long will it take China to step up just as Japan did, and what country will we exploit next? Eventually, won't we run out of 3rd-world countries to make all of our cheap stuff for nothing?
1 comment:
Why is it exploitation to buy things from people who can make them cheaply?
After all, that's what you do when you pay me (indirectly) to teach your class. I'm expensive, but can you imagine how much you'd have to pay someone to teach ManEc who didn't already have a Ph.D. in economics?
As to which company is larger, there are a number of reasons - not all of them good. It can be a sign of higher fixed costs. That's another way of saying that it is closer to natural monopoly; of course it could be a not-so-natural creation of the government too. Another possibility is the weakness of the legal system, which tends to lead to larger firms.
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