Sunday, March 19, 2006
TRADE BARRIER WARNING
THE STRAITS TIMES
Thursday, MARCH 16 2006
Page 22
So far, China-giant economy in clothing manufacture has occupied the Western region. Thus, many of Europe clothing manufacture companies have collapsed. The answer to this reason is that Europe companies have to pay for their workers a very high salary while China can export their products in a very low price. Everyone knows that China has a giant number labor. Thus, these clothing manufacture companies have a good opportunity to compete sharply with its opponents. As cheap price, consumers will choose the China products and domestic products will be frozen.
From my view, some Governments in Europe will to put a high quota to the exporting China clothing products to help their manufacture companies compete with this giant economy. However, trading and competition between these countries can make a benefit to consumers.
Thursday, MARCH 16 2006
Page 22
So far, China-giant economy in clothing manufacture has occupied the Western region. Thus, many of Europe clothing manufacture companies have collapsed. The answer to this reason is that Europe companies have to pay for their workers a very high salary while China can export their products in a very low price. Everyone knows that China has a giant number labor. Thus, these clothing manufacture companies have a good opportunity to compete sharply with its opponents. As cheap price, consumers will choose the China products and domestic products will be frozen.
From my view, some Governments in Europe will to put a high quota to the exporting China clothing products to help their manufacture companies compete with this giant economy. However, trading and competition between these countries can make a benefit to consumers.
# posted by Jackson @ 6:54:00 PM 
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China is indeeed a giant economy that has an almost unlimited supply of people and, as such, labour is not in short supply. In fact they have so much labour that they can mass produce products at a low price due to the so called "unethical" low wages and the low cost of living.
More economically developed countries like the United States and the whole of Europe, need to safeguard their economies and, as such, choose to impose tariffs on goods from China. This makes the price more competitive by upping the prices of the cheaper Chinese goods in order to stop people from buying hinese goods and not any of their own locally manufactured goods.
Great analysis there Jackson :)
Ryan
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More economically developed countries like the United States and the whole of Europe, need to safeguard their economies and, as such, choose to impose tariffs on goods from China. This makes the price more competitive by upping the prices of the cheaper Chinese goods in order to stop people from buying hinese goods and not any of their own locally manufactured goods.
Great analysis there Jackson :)
Ryan
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