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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: energyplay who wrote (55020)	10/28/2004 3:27:52 AM
From: Taikun	Read Replies (1) \| Respond to of 74559

EP, Take Taiwan for example. TWD increases in value, lower energy costs for economy, mfgs (eg chips) have higher margins BUT mfgs must lower costs to compete with China on exports to USA, Europe because due to higher TWD products sell for more ditto Korea If the mfgs energy input is large then they will possibly lower their cost of prodn more than they have to lower their price due to higher TWD, BUT if energy input is small they will enjoy less benefit and only thing they will realize is that they cannot sell products for as much due to higher prices. *will this benefit countries with low labor costs relative to energy more (ie Singapore sees less benefit from increasing value of SGD than Korea or Thailand) I am staring to wonder if the lower labor cost Asian countries will benefit the most from currency revaluation because as a proportion of inputs energy is higher. This, by the way, favors Thailand, Korea over Japan, Taiwan. David