FLATTENER 6 Notes

Michelle Hodak
FAS 493

FLATTENER 6
 December 11, 2001 (China formally joined World Trade Organization)
 Off shoring v. outsourcing
 What benefits come from off shoring:
o Cheaper labor
o Lower taxes
o Subsidized energy
o Low health-care costs
 Small town outside of Hong Kong create so man e objects such as razors, lighters, and other small goods.
 Companies today in order to be successful need to think in terms of China, what part of the process they can do in China, sell to China, or buy from China. If a company does not think this way, then they will be left behind in the next couple of years.
 China is competing with other small third-world countries such as Malaysai, Thailand, Ireland, Mexico, Brazil, and Vietnam. (Page 140)
 “Professor Oded Shenkar, author of the book “The Chinese Century
told Business Week (December 6, 2004) “You need an entirely new business model to compete,” he said China’s flattening power is also fueled by the fact that it is developing a huge domestic market of its own. The same Business Week article noted that this brings economies of scale, intense local rivalries that keep prices low, an army of engineers that is growing by 350,000 annually, young workers and managers willing to put in twelve-hour fays, an unparalled component base in electronics and light industry, “and an entrepreneurial zeal to do whatever it takes to please big retailers such as Wal-Mart stores, Target, Best Buy, and J.C. Penney.” (Page 141)
 “Critics of China’s business practices say that its size and economic power mean that it will soon be setting the global floor not only for low wage but also for lax labor laws and workplace standards. This is known in the business as “the China price.” (Page 141)
 “China is thinking that it is winning only on wages and not improving quality and productivity. In the private, non-state-owned sector of Chinese industry, productivity increased 17 percent annually, between 1995-2002 according to a study by the U.S. conference board.” (Page 142)

VIDEOS
http://www.youtube.com/watch?v=5ZwCDYLClPM (3.30)
http://www.youtube.com/watch?v=yFNSHAHbRWs (1.30)
http://www.youtube.com/watch?v=5LIGFoKTNjw (10.12)
http://www.youtube.com/watch?v=7YLp3-7K9C8 (2.08)
I will also create a formal paragraph before tomorrow.
I also looked up and found a ton of pictures for my section as well as videos on youtube.
We need to think of our final idea of how we are going to get the class involved.

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