History has demonstrated that the advantages of labor arbitrage seldom last forever. Moreover, plentiful labor is not a guarantee of skilled labor. Any advantage derived from labor arbitrage will ultimately be outweighed in value terms by accelerated cycle times, reduced defects and greater flexibility. This was a lesson learned by post-war Japanese manufacturers. Once they lost their status as low-cost producers, they began to reinvest in their plants and embrace automation.
Source: Outlook Journal (Accenture)
Subject: Economics
via Alltop RSS http://www.mbadepot.com/redir.php?id=18130&%3Brefer=rss&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+MBADepot+%28MBA+Depot+-+Latest+Content+Added%29
No comments:
Post a Comment