20110514 Follow Me 4

Follow Me：4,4
认真地看，学习着思考，promote to the next grade.THX!

2，2
this is the second time to be following this part of studying.
the sentence "When oil prices soar, transport grows dearer." is so perfect, before now, I always link the price of oil with the cost of some products and some companys, but I have never linked it to the cost of transporting. It's good!
If the fact likes this ,maybe the economic of China will be difficult, the supply chain will be more difficult to develop without the help of the foreign companies.
with the other hand, the part of "hot money" aims at the exchange rate between yuan and doller and if they are there, some firm should be there for the chances to get incomes from the gamble and the supply which is developed by the money.
the foreigners are not confident enough to say the idea clearly, cas the policy is unknowed in China, the policy in Exhange Rate and in the Rate and also in the Market is important to the companies!
but, to get a overall idea, the meaning of the report that the change with the factories is really happen, We should conside it!

to be shy that 。。。。I read this paper with a software which can help me get the meaning of new words, I should improve my english now and then.

above all, this part of studying is totally important! I will follow then。。

3,1

I didn't get online yesterday, so I missed yesterday's activity!

For today's topic, it is a topic discussed for long, but it is more heated these days for rebalance and inflation (especially for labor and oil). For China, it won't be possible to keep the development mode and it is the same for US. The two countries have to face the truth and adjust properly so as to avoid impacts caused by transforming.

Multinational companies will shift to consider markets not just low cost, and it is more likely that they go abroad to serve the emerging markets. They also have to pay attention on supply chains which should be made more flexible and reliable.

蛮好的
学习

4,4
KEY WORDS: MULTINATIONAS   OFFSHORE   LABOUR COSTS   BACK TO AMERICAN   RENAISSANCE
By reading this article , we may got the viewpoint that nowadays many multinational manufacturers are considering to set subsides bank to American due to the ever-rising labor costs in emerging countries like China ,India, etc. Labor arbitrage , which played a great part to pushing multinationals to locate offshore ,now  seems less allure at least for some multinationals(e.g.Caterpillar, a maker of vehicles that dig, pull or plough, is shifting some of its excavator production from abroad to Texas).
That BCG’s forecast for a “manufacturing renaissance” might be one of the most creative idea .This is from a basic logic that a stampede of plants coming home will boom American manufacture sector and its economy. However ,there are some reasons to be sceptical. First of all, some multinationals will find it hard to bring many jobs back to American .For example , in some areas, such as electronics, American no longer has the necessary supplier base. Moreover multinationals will continue to build most of their new factories in emerging markets , not to export stuff back home just for the fastest growing demand there.

check in 3,3

4/4

When clients are American firms looking to build factories to serve American customers, Mr Sirkin is increasingly likely to suggest they stay at home, not for patriotic reasons but because the economics of globalisation are changing fast.

对于那些以美国消费者为主、想到国外开设工厂的企业，施金越来越倾向于建议他们将工厂设在美国国内，这不仅是爱国主义的表现，也是因为全球经济正发生巨大变化。

4,4
In above article, the author describes  the phenomenon of mutinational manufacturing backing to America ,and there are several reasons accouting for this, such as the rising wages in china ,India, and the transportion expenses burden caused by increased oil prices, the similar productivity and consumption in America and china and so on,   As far as i am concerned, china as an emerging market will still play its key role in world economic for a long time , and the rising of wages in china is not so severe as imagined, then  consumption with the sustaining of inflation  will increase naturally,
Thus,plesse keep a calm brain on it.

4,4

In my opinion, higher labor cost is one reason. But the most important reason for the US companies to go back is that the export policy in China will be changed. Since 2008, the income tax rate of foreign-invested companies has risen to 25%, the same as that of domestic enterprises. And now, China is trying to transit from an export-oriented country to a domestic consumption emphasized one. In former days, foreign companies are encouraged by export tax rebate, but now, the advantage is diminishing.
After long periods of economic recession, I guess US government is taking some measures to stimulate domestic manufacturing industry, and it poses temptation to the entrepreneurs. By contrast, China's preferential policy to foreign companies are changing. In the long run, as required by WTO and also expected by USA, the protectionism barrier of China will be lower. Therefore, it doesn't matter much whether US companies should establish one subsidiary in Chinese mainland to circumvent such high barriers later.
I think all the above factors contribute to the result that American companies prefer to set up new factories in homeland rather than in China.

Follow U 2，2
the gap of wages between China and the west has been narrowing,  which shows our advantage of low labour cost is shrinking but may be also a great chance for China to  transform the mode of economic development from labour intensive to others.