Re: Economics rears its ugly dismal head
Some here have talked about cheap Asians, but they aren't as cheap as they were and a growing numbre of people are findintg that their absolute rate of pay in China is greater than it would be anywhere else. Cheap China is ending and India is going that way too.
Also there are major costs in doing business in India, China or Russia.
Corruption is a major cost and in all three countries contracts are just this side of useless since in China there basically isn't any "law" at all in the sense it is used in civilised countries, Indian courts can take decades to handle things that take a week in the UK and are corrupt and Russian courts would actually be fairer if they simply auctioned the verdict.
Infrastructure in India & Russia is a disaster area, telecoms are like we'd see if BT had remained a monopoly.
In the UK you can register a company online in minutes and for nearly industries you don't need a permit at all, much less a a permit that requires a bribe merely to get the form.
One hilarious irony is that immigration *to* China, Russia and India is a pain, a mix of bureaucracy, racism and corruption mean that getting skilled staff into these places can be really hard, harder even than the BNP's inhouse paper the Daily Express wants for the UK.
But a btg thing is the cost of non-locality.
Skype isn't as good as having a coffee to talk through an issue, sending goods by boat is slow enough that the market for them may have changed radically by the time they get there which is a big term for a retailer. You can air freight iPads because of their cost/weight but that's insane for most other goods.
Note that I've not adopted left wing racism in this posting. I don't believe that just because I'm white that somehow I'm going to be better at making "advanced" goods and am inevitably a more skilled worker than an Asian, a position taken by the deluded pushers of the UK's rightfully dying manafacturing sector.
In China a skilled production engineer can earn a serious multiple of not only the average Chinese wage, but also be one of the highest paid people he knows and will be part of the decision makmmking process.
His UK equivalent earns shit money and the nearest he will get to decision making is high handed pareonising emails from junior accountants.
That means that smart Chinese kids choose manufacturing far more often than British ones, so that we have the high end of 1/4 of the world's populaton competing with the bottom 25% of the 1% of the world that live in the UK.
Who do you think is going to win that ?