Those who want a break from all the introspection over terrorism could do worse than let their minds run free on the implications of what is happening in China and India, or puzzle about holiday destinations now that the euro is going down while some other destinations are evidently seeing the value of their money rise.
8 Responses
Feed: A Fistful of Euros
July 10th, 2005 at 10:37 am
I do not have the like but i read last year a meaningful article about how India-china are building a Union without the politicians but by Business (in a comparaison with Europe) :
More a more products were designed in India build in China, shipped from HK ( but the ways can be differents). The Links between these giants seam more and more strong, they are opening their hugely growing internal market to eachother. It s a pleasure to see the half of humanity going a peaceful and optimistic way. I am happy to live on this side of the planet (Australia
).
July 10th, 2005 at 10:47 am
“how India-china are building a Union without the politicians but by Business”
I have the impression that Singapore is a pretty important hub in all this. The main Indian IT outfits seem (eg) to have all their back-up servers in Spore.
July 10th, 2005 at 10:54 am
This news is also not without interest, and all with virtually no advertising.
“The 100,000th Logan rolled off the assembly line at Pitesti, Romania, the first production site, this month, and Renault said it was exceeding its most optimistic sales targets both in Romania and abroad. World sales in the first six months of this year exceeded 79,000, the company said.
July 10th, 2005 at 11:06 am
yes
Sg is important but a small player in front of these giants (and i put Sg in the chinese’s area, mandarin rule ;-)).
Renaut made a good move, but i am really worry for the european economy when chinese’s cars will reach our continent, with the help of the bigger player (BMW, toyota, honda), their ambition it to produce as the same or better quality than japanese !! and they become really good at reaching their target.
the cars industries has so much ramification in our economy that this move can be a real economic Tsunami for us (europe)
what is your opinion/ information about that ?
July 10th, 2005 at 11:25 am
“the cars industries has so much ramification in our economy that this move can be a real economic Tsunami for us (europe)”
I have recently posted something on this:
http://fistfulofeuros.net/archives/001460.php
I think the Tsunami isn’t coming, in some ways it is already here. If you look at the balance of payments situation, a big chunk of Southern Europe is under-water already. Ideally these societies would now make structural reforms to try and confront the issue, but this is just where you hit the ‘ageing trap’ so it isn’t obvious they will be able to rise to the challenge.
I was especially taken by this report on the Logan since it seems to confirm a thought I have been having. Essentially if you look at Japan, as the crisis dragged on, so the quantity of cheap imports from China rose and rose. There was a kind of ‘negative elasticity’, ‘inferior good’, effect. Now a lot of people are putting a lot of hope on a future Renminbi re-valuation, but if this Logan ‘no advertising’ downtrade tendency spreads, then we could see the movement into lesser known brands offsetting any currency effects.
In general what I am trying to draw attention to is the kind of acceleration effect which is characterising events, and the way in which we face not one, but a packet of problems. My main hunch is that the only serious way to address things will be via a (yet to be worked out and applied) variant of complexity theory.
July 10th, 2005 at 11:57 am
i glad to see you (an economist) worry a bit about this string of new events and situation , usually when i post on this kind of subject i get a “comparative advantage, stupid” answers.
But i am not really in Ricardo theory because of the new globalization, technologies and investments do not have any frontiers anymore, look like a bit like frontiers are cancelled (but i m not economist, i just got courses macro/micro (postg)).
July 10th, 2005 at 11:17 pm
So is this the first wave?
http://www.guardian.co.uk/china/story/0,7369,1522942,00.html
ps. I find it weird that they are 30% ford owned and selling a rebadged old Opel.
July 10th, 2005 at 11:30 pm
This looks like dumping.
http://msnbc.msn.com/id/8516802/page/2/
The price in China is $20K, about the same as in Holland. Except you have to deal with the taxman in Holland who is a lot more expensive than he is in China.