European tech businesses cool on China due to coronavirus lockdowns Supply chain issues and other disruptions in China caused by strict COVID-19 lockdown measures have seen 23 percent of European businesses operating in the Middle Kingdom consider moving elsewhere, according to a recent report. The report, from the European Chamber of Commerce in China and released on Thursday, said the number …
Let's assume making your product costs $5 in one location and $100 in another. Now that's such a difficult decision, which one should you chose?
Hint: Your board and shareholders will strongly suggest to stuff your eggs and baskets somewhere and pick the $5 location.
Yes, and it worked well for them, until it didn't. And it hasn't been working. The basket with all the eggs have been dropped and the hens flew the coop taking the egg business with them.
Am I the only one left that thinks a small but consistent profit year after year is better than a single jackpot followed by bankruptcy?
Clearly...
I'd even go out on a limb and say you aren't working in finance... "Small profit" is an insult and a career breaker.
Obviously some geopolitical mishap isn't your fault, the important thing is to show you did quite well till it happened. Never forget those eggs aren't yours, you don't really care what happens to them.
The question is more, can I get nothing, or can I get something at a slightly higher price than normal?
Certainly diversifying your manufacturing locations around the globe and getting components from other sources is a good long term strategy. Unfortunately, moving your manufacturing is only part of the answer, as long as the majority of your components are made in China, that won't help too much, those components also need to be made at more locations in more countries.
Ideally, you would always produce locally, because it would be too expensive to ship components and finished products half way around the globe; but economic conditions in poorer countries mean that you can still pay the shipment costs and produce for less than in domestic markets...
So locking down the economy and trying to hide from a global virus screws up your economy. Whodathunkit? While Sweden had some of the lowest deaths through covid in Europe-
https://www.telegraph.co.uk/global-health/science-and-disease/swedens-death-rate-among-lowest-europe-despite-avoiding-strict/
We inflicted a lot of damage for little to no gain. Now we get to watch others continue with that and see the damage it causes.
Sweden did less well than other nordic countries; the distinguishing features for that part of the world are a well funded health service and a higher level of health/fitness in the general population.Oh, and not sending infected people to residences for the elderly.
@AC
"Oh, and not sending infected people to residences for the elderly."
Apparently they had the opposite issue of not sending care home patients to doctors when they were infected. Like everyone they wernt perfect but made for a very good experiment for the covid response
If what we are being told about the ongoing threat to the health of the vaccinated is correct, then the same thing is happening to the CCP, that their death rate is now ~40% above normal. On the other hand, if no one within China has the courage to tell the CCP the truth, that the vaccinations are the cause of the increase in deaths, and instead, the CCP has taken on board the idea that the increase of death rates are entirely the result of the unvaccinated spreading such infections. Then to the CCP, the lock downs make sense, and can be seen as a classic case of panic . . . citizens are dying, "we" are dying too, so everything we must do is bring the ongoing infections to the minimum. The simple fact is, Corona viruses are also the source of the common cold, which we all know spreads throughout every nation. Trying to bring to a halt the spread of a common cold is never going to work; instead, we long ago learned to live with it. Now old fashioned ideas like catch the virus and survive makes you immune for the rest of your life, have been dumped; panic rules.
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