Why jobs are going to China and India

[HairyArsedBloke]

[Sysman]

That completely misses the different cost of living in different countries.

[doodab]

That completely misses the different cost of living in different countries.

When you are looking for the cheapest place to put your widget factory, you only have to worry about what people will work for. Low cost of living = less demanding workers = cheaper widgets.

[Zippy]

That completely misses the different cost of living in different countries.

And profiteering. A Bob will be charged out at half the cost of a UK worker but could take twice as long to do the job (lots of reasons for this). So UK plc don't save any money but hand over the "savings" to somewhere they can't be taxed. Genuis!

[Sysman]

And profiteering. A Bob will be charged out at half the cost of a UK worker but could take twice as long to do the job (lots of reasons for this). So UK plc don't save any money but hand over the "savings" to somewhere they can't be taxed. Genuis!

True and the witch hunts about tax havens no doubt have a part to play.

It also gives the large corporations a stick to beat us with.

[MrMark]

When you are looking for the cheapest place to put your widget factory, you only have to worry about what people will work for. Low cost of living = less demanding workers = cheaper widgets.

Cost is only part of the equation (even if it's seen as the most important part). Security and communication links would be other considerations - I'm sure wage levels are low in somewhere like Sudan but I don't see loads of companies lining up to relocate there. Also skill levels and lack of government intervention would be factors - Would you move your widget factory to Cuba or Venezuela, knowing the regime would be tempted to nationalise you?

[HairyArsedBloke]

Cuba is one to watch. Once Castro dies there will be a bit of in-fighting, but once that is over it should open up. There is a lot of potential there.

[MrMark]

Cuba is one to watch. Once Castro dies there will be a bit of in-fighting, but once that is over it should open up. There is a lot of potential there.

Agree, but we're not talking widget factories. Think a mixture of Las Vegas, Acapulco, Miami Beach, Dubai, Gibraltar, Monaco etc.

[HairyArsedBloke]

Agree, but we're not talking widget factories. Think a mixture of Las Vegas, Acapulco, Miami Beach, Dubai, Gibraltar, Monaco etc.

That is what Cuba was up to pre-revolution. That does not mean that it would come back to the same extent.

The Cuban people are very well educated and, despite what has been done to them, very entrepreneurial. There is plenty of opportunity for manufacturing in Cuba.

[MrMark]

That is what Cuba was up to pre-revolution. That does not mean that it would come back to the same extent.

The Cuban people are very well educated and, despite what has been done to them, very entrepreneurial. There is plenty of opportunity for manufacturing in Cuba.

I don't necessarily equate entrepreneurial with opening manufacturing factories. Didn't Dyson offshore his factories to the far East? I just can't see people investing in factories in Cuba to a large scale, when they could get better returns from casinos, hotels, even retirement homes.