To: TobagoJack who wrote (40633 ) 10/3/2008 12:13:12 AM From: elmatador Respond to of 220276 Requiem for the the Asian model (AM), The AM inaugurated by Japan, developed downstream -via rollover strategy- of relying on 'export its way out of poverty' has reached the end now that it has lost its biggest customer the developed countries. The Asian model(AM) end will blowback right to the US and Europe's doorsteps because it is a intrinsic part of the economies of those regions. What drove the AM was technology developed, initially, for winning WWI, ported to Japan and spread from there. It was a second industrial revolution when the skilled artisans of Europe -who made the first industrial revolution- lost and gave way to mass production kickstarted by Japan. It's icons are the Casio watch that replaced the mechanical watch invented by the Europeans to sail to Asia. Li-Ka Shing who started selling plastic flowers. The container ship. The AM relied on a market for its goods as Europe and the US discretionary income rose after WII rebuilt. It continue as price pressure continued to cheapen the products and technological development created bigger economies of scale. US and Europe will be affected by the end of the AM not only because they will be no longer the driver of the AM. They are part of the deal too. Intrinsically connected to the end of he AM. Product development in Eastern Europe, software development in Beijing, integrated in China mass production assembly lines and shipped massively to the rest of the world. The Rock concert T-shirt, designed in Germany, mass produced in Asia and shipped back. The tennis shoes designed in Italy, cut the pieces and shipped to Bandung for sewing. The cottage industry on a world scale is now needs a review. Will Asian themselves takes US slack left by Europe and the US, or they will engage themselves in a cut throat competition, killing each other in the process, on a death spiral until no one is making money any longer?