This is also another highlight from StarBizWeek 21 May 2005
It states the following facts:
1. The lost of 17,200 US textile and apparel jobs in the first quarter of 2005 was a direct consequences of the 1573% increse in imports of chinese-made cotton trousers from a year earlier.
2. According to A.T. Kearney, it cost USD135 to manufacture a dozen of pairs of trousers in the US. The import price for chinese trousers is only USD57 per dozen. The rest of the world averages at USD69
3. Bush administration, on May 13 invoked its right to impose "safe-guards" on imported trousers from China.
Two reasons for being hard:
1. Why deny a cheaper trousers to Americans ?
--> For future benefits. According to Pietra Rivoli, and economist at GeorgeTown University, if American are buying trousers from their own manufacturer, each worket would receive more than USD9k in job retraining and other benefits. Means, even if they can't keep their job, they will still get other good things. Something better than nothing.
2. The yuan peg at 8.3 to USD is giving the chinese exporter and unfair edge. Means it is benefiting the chinese tremondously. The US senate is working on a fixed tariff of 27.5% on across-the-board chinese imports. Hoping to force China to reevaluate its currency to the model which follows demand.
My evaluation is this...
Why is it relevant to I.T ?
My guess is that the reason for high living cost of american compared to that of chinese is apart from higher living standard, also due to the need for high maintenance. One reason could be that American has the need to connect to the Internet, so at least they need to earn that kind of wages to support monthly subscription. haha, this is abit crazy, but yeah I do feel that American has higher maintenance in daily life such as beer, condom,books and etc. Or perhaps they have a need to maintain a cell phone and things like that.
Chinese on the other hand, don't really care about Internet yet, self-made-beer, no-need-condom and are not so interested to read as much book as possible.
So, I.T does help to create lesser and lesser job around us. Beware of IT!
--------------------Evalet------------------
1. why is USA having high living standard?
2. why is USA have better Internet facilities?
3. why is USA economy failing?
4. why is China economy rising?
5. why is USA fearing china?
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It states the following facts:
1. The lost of 17,200 US textile and apparel jobs in the first quarter of 2005 was a direct consequences of the 1573% increse in imports of chinese-made cotton trousers from a year earlier.
2. According to A.T. Kearney, it cost USD135 to manufacture a dozen of pairs of trousers in the US. The import price for chinese trousers is only USD57 per dozen. The rest of the world averages at USD69
3. Bush administration, on May 13 invoked its right to impose "safe-guards" on imported trousers from China.
Two reasons for being hard:
1. Why deny a cheaper trousers to Americans ?
--> For future benefits. According to Pietra Rivoli, and economist at GeorgeTown University, if American are buying trousers from their own manufacturer, each worket would receive more than USD9k in job retraining and other benefits. Means, even if they can't keep their job, they will still get other good things. Something better than nothing.
2. The yuan peg at 8.3 to USD is giving the chinese exporter and unfair edge. Means it is benefiting the chinese tremondously. The US senate is working on a fixed tariff of 27.5% on across-the-board chinese imports. Hoping to force China to reevaluate its currency to the model which follows demand.
My evaluation is this...
Why is it relevant to I.T ?
My guess is that the reason for high living cost of american compared to that of chinese is apart from higher living standard, also due to the need for high maintenance. One reason could be that American has the need to connect to the Internet, so at least they need to earn that kind of wages to support monthly subscription. haha, this is abit crazy, but yeah I do feel that American has higher maintenance in daily life such as beer, condom,books and etc. Or perhaps they have a need to maintain a cell phone and things like that.
Chinese on the other hand, don't really care about Internet yet, self-made-beer, no-need-condom and are not so interested to read as much book as possible.
So, I.T does help to create lesser and lesser job around us. Beware of IT!
--------------------Evalet------------------
1. why is USA having high living standard?
2. why is USA have better Internet facilities?
3. why is USA economy failing?
4. why is China economy rising?
5. why is USA fearing china?
----------------------------------------------
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