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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 375.93-1.8%Nov 14 4:00 PM EST

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To: Rolla Coasta who wrote (10889)11/1/2006 2:58:59 AM
From: elmatador  Read Replies (1) of 217800
 
“offset RMB inflation & dollar deflation” Brazil has its own strategy. Globalization equalizes everything and the lowest cost producer –barred protectionism- takes the market. Let me give you some examples of how one can react.

Brazil made cheaper shoes. Italy made higher quality footwear.

China took cheaper shoes market, Brazil, did not try to compete with China. It went and took the Italy’s market by moving up market.

China took flip-flops market. Brazil took Havaianas, put them in the feet of Jack Nicholson and charge USD85 for a pair.

China needs lots of buses, Brazil Marco Polo went to China and set a factory to make them there. Brazilians can’t compete with Chinese factory workers.

China takes European/US market, Lula goes out with the strategy of “changing the geography of trade. Sell to Africans and Middle easterners.

Huawei goes out. Makes cheaper telecoms gear. To take on the world, they need the guys who go out there, sell, implement and service those networks. For that they have to pay more money to compete with the people who are already working for Alcatel, Siemens Nokia, and Ericsson. They can’t afford to wait ten years to on the job train their engineers; they need to sell, within those ten years.

So no need to work cheap cheap like the Chinese.
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