State of cheap asian labor

[NewSc2]

I work at an importing company and we're currently importing stuff from China, Taiwan, and a few southeast countries. I've noticed that in almost every industry many importers are taking advantage of the cheap labor in Asia right now and in the past decade or so the quality and technical know-how of Asian manufacturers and goods have been getting much better.

Many products traditionally dominated by American and European manufacturers are seeing direct competition from Asian goods, as the quality and effectiveness of whatever they're selling (speakers & guitars, just to name a couple) are rivalling that of American/European companies at half price.

Is this trend going to continue for a while, or will labor prices in Asian countries come up to those of American labor? Look at Japan - labor there is more expensive than it is in the US now, but I don't believe it was like that 20-30 years ago (i'm not that old so i don't know for sure)

I'm looking to see everybody's thoughts to see if the importing business is a viable business that will expand and grow for decades to come, or if we're near the apex and the Asian labor prices will rise, putting everybody on an even playing field...

 

[Deadtrees]

One of the most important factors is the value of money in those 'periphery' Asian countries.
Compare Japan and China

Janpan - 800 dollars a month? I'm fvcked!
China - OMG! 800 dollars! I'm da man now!

You might think it's sad that those Cambodian workers are only getting paid some cents an hour, but for them it's DA deal. With that money, there's so much they can do. Based on their life style they've been leading, they're not like us; they are not, yet, in the status of wanting riced-up cars, doom3-smoking computers...etc.

In the capitalism system we have, there're always going to be a periphery country and core countries will benefit from them.
There's no point of you comparing Japan and U.S on this matter because both of them are core countries. It doesn't matter if it's an Asian country or whatever.

 

[NewSc2]

Originally posted by: Deadtrees
One of the most important factor is the value of money in those Asian countries.
Compare Japan and China

Janpan - 800 dollars a month? I'm fvcked!
China - OMG! 800 dollars! I'm da man now!

You might think it's sad that those Cambodian workers are only getting paid some cents an hour, but for them it's DA deal.

I know that.. goods and rent and food are much cheaper there than they are in the US. I'm just wondering if it will stay that way forever.

If demand for Asian products continues to rise, as it has been, the wages of the people in those countries will rise as well. How long will wages stay low for them?

 

[Tsaico]

I don't think there is any way the labor will catch up the way it has here. The general US is spoiled in the quality of life and think they should be getting more and more money. The mentality there is "If I don't take it, then someone else will and I will have nothing." So they take it. Since there are so many people in the country, this statement is true. Here you have people who refuse to flip burgers since they think it just isn't worth it, earning 900 a month or waiting for the 800 for welfare... Doing nothing sounds good to me if this were my choice.

 

[Deadtrees]

Once again, it's not about those Asian countries; it's about periphery countries. Core countries will always find(and make) periphery countries who has cheap labours. Like many TNCs have done, they'll continued to move around the world looking the the deal. The economical system of the world we have, is based on the core of capitalism. Everybody can not be rich, some has to work for the rich ones.
This is one of the reasons why IMF crises hit Asian countries.
and yes, some periphery nations may overcome their currnet status, however it's getting harder and harder and many, if not most, of them will remain as periphery countries.

 

[Amused]

Originally posted by: Deadtrees
Once again, it's not about those Asian countries; it's about periphery countries. Core countries will always find a periphery countries who has cheap labours. Like many TNCs have done, they'll continued to move around the world looking the the deal. The economical system of the world we have, is based on the core of capitalism. Everybody can not be rich, some has to work for the rich ones.
This is one of the reasons why IMF crises hit Asian countries.
and yes, some periphery nations may overcome their currnet status, however it's getting harder and harder and many, if not most, of them will remain as periphery countries.

Um, "periphery" countries can, and have, become "core" countries.

Japan happens to be one of them.

 

[Deadtrees]

Even if...even if the labour cost of Asian countries rise, it won't really matter.
Don't limit your view by only thinking about those 'Asian' countries.
If Joe quits working at McDonalds', the other Joe will come along and there're many Joes out there in the world.

 

Yes importing is and will continue to be a good business.
America is more and more of a service based economy every year.

 

[Deadtrees]

Originally posted by: Amused

Originally posted by: Deadtrees
Once again, it's not about those Asian countries; it's about periphery countries. Core countries will always find a periphery countries who has cheap labours. Like many TNCs have done, they'll continued to move around the world looking the the deal. The economical system of the world we have, is based on the core of capitalism. Everybody can not be rich, some has to work for the rich ones.
This is one of the reasons why IMF crises hit Asian countries.
and yes, some periphery nations may overcome their currnet status, however it's getting harder and harder and many, if not most, of them will remain as periphery countries.

Um, "periphery" countries can, and have, become "core" countries.

Japan happens to be one of them.

Japan became a core country long long long time ago. They became a core country in the very beginning of the century. Things are certainly different in those early years than nowadays.
Beside Japan, how many countries can you think of that became a core from a periphery in recent history? Even S. Korea and Taiwan hasn't even become a core country.

 

[Deadtrees]

And I feel like I'm helping you on your research essay.
(After writing above sentence, I just checked your e-mail address, and I see that you're probably an university student).
I'm outta here.

(In this case, you're the core one and I became the periphery one)

 

[NewSc2]

Originally posted by: Deadtrees
And I feel like I'm helping you on your research essay.
(After writing above sentence, I just checked your e-mail address, and I see that you're probably an university student).
I'm outta here.

(In this case, you're the core one and I became the periphery one)

FYI it's not for a research paper. I'm trying to gauge the state of the importing industry in the next decade or so, so I can decide whether or not to pursue it or not. With the connections I have, I think I should go into it (many of my relatives import/export from Taiwan).

 

[bandana163]

I find this whole outsourcing/moving east a good financial, but a terrible moral move.
I mean, come on, a big company can't afford to pay the ~250$/month minimum wage in my country (Hungary) to some workers and has to seek cheaper labor? Bah.

A lot of companies have decided to move east in the past few years saying they can't afford to pay their workers such high salaries...
They go to a country with cheaper workforce, then they decide their exorbitant profits are not enough and seek even cheaper labor.
I guess their ideal workforce would consist of slaves.

 

[kami333]

Originally posted by: NewSc2

Originally posted by: Deadtrees
And I feel like I'm helping you on your research essay.
(After writing above sentence, I just checked your e-mail address, and I see that you're probably an university student).
I'm outta here.

(In this case, you're the core one and I became the periphery one)

FYI it's not for a research paper. I'm trying to gauge the state of the importing industry in the next decade or so, so I can decide whether or not to pursue it or not. With the connections I have, I think I should go into it (many of my relatives import/export from Taiwan).

Will importing/exporting remain an important business? Definately. Will importing manufacturered goods from Taiwan/China/etc to US/EU/etc remain the business model? Maybe, or the reverse may be true.