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Saturday, August 07, 2004

Comparative advantage and competitiveness via Bubblegeneration

One of the changes due to globalisation and increased trade is that the link between macro structure and how it limits (or enables) firm strategy is something that is going to emerge as a very, very serious issue in the near future Bubble generation points out this excellent article and highlights an example quoted in the report,"...the health care liabilities of both employees and retirees represent a significant competitive disadvantage relative to the Japanese carmakers with their younger, non-unionized work force. He noted that GM, which has two-anda-half pensioners for every employee,estimates that pensions and health care benefits add $1,000 to the cost of each car it makes. A structural issue like that is not easily remedied."
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Sadagopan's Weblog on Emerging Technologies, Trends,Thoughts, Ideas & Cyberworld
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