Where the cost savings lie... going OT - Saab General Bulletin Board - Saabnet.com
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Where the cost savings lie... going OT
Posted by Bruce (more from Bruce) on Thu, 22 Sep 2011 10:14:48
In Reply to: On the flip side..., Coggs, Thu, 22 Sep 2011 09:20:10
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I use to work in electronics and have spent some time in Chinese factories... which were using the same equipment that were being used in the US, so the same cost basis, and had just as few workers. It was explained to me that the "cost" savings were not in the direct labor (which there was very little of in the US or China) but the overall costs of doing business.. i.e. if costs were internalized to the company directly or through input costs or externalized to the Government/Country. For example, anyone who has been to China and seen the sky, or rather seen the smog as one can't see the sky, realizes quite quickly that companies, (including power production & power costs), are not internalizing the cost of creating pollution and externalizing that pollution and its costs. Kinda like coal power production here in the US (and other places, such as China) where its estimated the pollution causes hundreds of billions of dollars worth of health care expenses, (Chicago where I live & has coal plants in and west of the city has a horrible asthma rate) but that is not borne in the cost of coal power production and is externalized.
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