Posted: Mon Oct 15, 2007 10:44 pm Post subject: How to Handle Intense Competition From China & India
We often hear in the market that the selling price of goods from China and India are even below local production costs. That is the net effect of Globalization, and we can't compete against macroeconomics factors, such as the currency because they are always about 100% cheaper from the foreign buyers' point of view when compared to South East Asian Goods.
Many South East Asian production companies, even worldwide, are considering moving their production to China thinking that the answer to their problems / main factor is cheap labour.
Is Low Cost the main factor? Is this the only factor behind their unsuccessful businesses? Is this a long-term strategy?
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