Report: Send it offshore, ASAP

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And why do you think rates have to grow proportionally?

"he report also argues that lower costs and other advantages in countries such as India won't tail off for at least the next two decades--and may widen. Even if labor rates jump more quickly in low-cost countries, it argued, the gap in real wages could increase because of the countries' very low base wages. For example, a 100 percent increase in a factory worker's $1-an-hour wage still only raises the company's costs by $1 per hour, while a 10 percent hike for a $30-an-hour factory worker in the West costs a company $3 per hour."


That's very bad example. It is based on numbers and not on social trends that are prevalent and mere basis for any economy. The example is rates of wages in Eastern Europe when the communistic system fell. The rates of wages grew by hundreds percent in some of those countries - not by 100% as author suggest as extreme.

People tend to compare absolute wages arther than what they mean in their local environmnet. That's another missed fact of globalization.


Good luck

Posted by: FirstNLastN   Posted on: 06/16/04 You are currently: a Guest | Members login | Terms of Use

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