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Strategies & Market Trends : MARKET INDEX TECHNICAL ANALYSIS - MITA -- Ignore unavailable to you. Want to Upgrade?

To: patron_anejo_por_favor who wrote (12537)	6/3/2002 6:38:59 PM
From: dvdw©	Read Replies (1) \| Respond to of 19219

All due respect; Much of this manufacturing flight from the US to foreign countries is 100% owned by the parties doing the fleeing, this in effect provides these Capital owners with labor cost comparative advantage, and that is good for profits. Manufacturing moved is different than manufacturing folded. It amazes me that this out of sight out of mind element of the equation is so quickly adopted by those spinning the bear case. Nike manufactures in China for it's shareholders, and you can extrapolate that accross the board to every other industry. Cheap labor is a Comparative advantage of developing economies. This provides companies with a competitive advantage in the world marketplace. In the example of the number of circuit board manufacturers who have folded or abandoned the marketplace, this phenomena is more related to the issue of entreprenuership, and the forward business cycle. When the next wave of entreprenuership takes hold, if those hottest segments include the use of circuit boards, you can expect this sector to rebound, that can mean that there will be new companies springing up, or consolidation will occur to gain economy of scale by past cycle survivors. It's never pleasant when it's close to home, but it's never as simple as scattered rationalizations make it out. Another trend is that of outsourcing, foreign or domestic; this trend is escalating and will have a positive material impact on those doing it. In effect; Shareholders will be the beneficiaries.