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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: valueminded who wrote (55367)8/26/2006 8:25:41 AM
From: arun gera  Read Replies (3) | Respond to of 116555
 
>Agreed prices are going up. The company I work in sources from China. Prices are up significantly for small pmdc motors, batteries etc.>

What percentage of the retail price of the goods is the ex-China price? In one oft quoted example, $1 bra shipped from China is sold in Victoria's secret store for $23. That means prices are determined by the inefficiency of the supply chain and guessing audience preferences than by the ex-china price.

-Arun



To: valueminded who wrote (55367)8/26/2006 11:33:08 AM
From: regli  Respond to of 116555
 
Thanks for your inside information.

Increased prices from China will affect three things negatively IMO, U.S. productivity figures (see Henry Liu), profitability (if increased prices are not passed along) and inflation.

Henry Liu
The economics of a global empire
atimes.com


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