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    to a range of knee jerk reactions. Prices are cut, people are laid off, operations are moved offshore, and some businesses even give up. We rationalize these short-term decisions as solutions but, in reality, they only delay the inevitable. We are caught trying to buy time in the hope that the crisis will go away.

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    Talk of China's economic impact on the global economy is all the rage at most business meetings and in media articles focused on improving North American competitiveness. The barrage of news and numbers coming out of China seems relentless. It makes even the strongest quiver.

    • Growing technological expertise - 360,000 new engineers per year join China's workforce
    • Low wages for both skilled and unskilled labor - Fortune Magazine (Dec. 6/04) cites 39 cents per hour for industry laborers, $2,000 per month for design engineers, and $20 per month for general laborers
    • China is experiencing more than 10% growth per year
    • At the same time, hundreds of thousands of jobs are disappearing in North America
    • Fortune 1000 companies are being bought up or heavily invested in by Chinese companies
    • Natural resource and energy prices are skyrocketing, in part because of increased global demand

    China seems to have become a world economic power practically overnight. As we woke up to the new environment, market pressures had increased at a phenomenal rate and our margins were spiraling downwards out of sight.

    As with any change we think is outside of our control, our natural reaction is fear. The resulting panic can stimulate business leaders into a range of knee jerk reactions. Prices are cut, people are laid off, operations are moved offshore, and some businesses even give up. We rationalize these short-term decisions as solutions but, in reality, they only delay the inevitable. We are caught trying to buy time in the hope that the crisis will go away.

    If we were

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    00 new engineers per year join China's workforce
  • Low wages for both skilled and unskilled labor - Fortune Magazine (Dec. 6/04) cites 39 cents per hour for industry laborers, $2,000 per month for design engineers, and $20 per month for general laborers
  • China is experiencing more than 10% growth per year
  • At the same time, hundreds of thousands of jobs are disappearing in North America
  • Fortune 1000 companies are being bought up or heavily invested in by Chinese companies
  • Natural resource and energy prices are skyrocketing, in part because of increased global demand
  • China seems to have become a world economic power practically overnight. As we woke up to the new environment, market pressures had increased at a phenomenal rate and our margins were spiraling downwards out of sight.

    As with any change we think is outside of our control, our natural reaction is fear. The resulting panic can stimulate business leaders into a range of knee jerk reactions. Prices are cut, people are laid off, operations are moved offshore, and some businesses even give up. We rationalize these short-term decisions as solutions but, in reality, they only delay the inevitable. We are caught trying to buy time in the hope that the crisis will go away.

    If we were

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    >At the same time, hundreds of thousands of jobs are disappearing in North America
  • Fortune 1000 companies are being bought up or heavily invested in by Chinese companies
  • Natural resource and energy prices are skyrocketing, in part because of increased global demand
  • China seems to have become a world economic power practically overnight. As we woke up to the new environment, market pressures had increased at a phenomenal rate and our margins were spiraling downwards out of sight.

    As with any change we think is outside of our control, our natural reaction is fear. The resulting panic can stimulate business leaders into a range of knee jerk reactions. Prices are cut, people are laid off, operations are moved offshore, and some businesses even give up. We rationalize these short-term decisions as solutions but, in reality, they only delay the inevitable. We are caught trying to buy time in the hope that the crisis will go away.

    If we were

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    world economic power practically overnight. As we woke up to the new environment, market pressures had increased at a phenomenal rate and our margins were spiraling downwards out of sight.

    As with any change we think is outside of our control, our natural reaction is fear. The resulting panic can stimulate business leaders into a range of knee jerk reactions. Prices are cut, people are laid off, operations are moved offshore, and some businesses even give up. We rationalize these short-term decisions as solutions but, in reality, they only delay the inevitable. We are caught trying to buy time in the hope that the crisis will go away.

    If we were

    All You Wanted To Know About B2B Portals
    B2B (business-to-business) websites include all internet-based technical solutions which facilitate services in the establishment of new trading relationships between companies and supporting the existing relationships. It can be termed as an e-market for e-business transactions. A B2B portal primarily serves as a platform for wholesalers, retailers, distributors and manufacturers to carry out their business activities online. It allows electronic transfer of orders, invoicing and payments. B2B stands for business to business, so in B2B site the communication and transaction is between one business ventures to another business venture, here the targeted
    to a range of knee jerk reactions. Prices are cut, people are laid off, operations are moved offshore, and some businesses even give up. We rationalize these short-term decisions as solutions but, in reality, they only delay the inevitable. We are caught trying to buy time in the hope that the crisis will go away.

    If we were to stand back and look at the situation more calmly, we would see alternatives and opportunities to actually transform our businesses to renewed levels of success. Quick solutions are usually not solutions at all. They are, all too often, highly visible indicators that we are desperate.

    There are no miracles without 'sweat equity'. We have to thoroughly understand the competitive situation and develop solid plans that work for the long term rather than simply give us a temporary blip in stock value. It's just not good enough to say we tried but failed.

    The question from business leaders is - how do we compete with low labor costs, a seemingly unlimited supply of labor, a highly educated workforce, rapidly increasing costs of commodities and resources as well as a competitor poised to become the economic power worldwide?

    The first thing we have to realize is that our competitor shares many of the same pressures that we ourselves feel. To paraphrase George Santayana, "Those who do not know history are doomed to repeat it." We have to remember that Japan, post World War 2, had a huge but fleeting advantage based on low labor costs and low-tech mass production. It doesn't last. There is always another country or group of companies waiting to come at you the same way.

    So what happened with J

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