The consequences of cost reduction
 

This situation could happen anywhere but this is not the case. In the land were cheap labour is the key to industrialization, all is made and produced as cheap as possible. There are thousands of multinational European and America companies working there. Costs are rationalized in such a way that the products manufactured end up costing less than then shipping them to Europe. All is made at the lowest possible cost with a huge lack of Quality. Today I bring you the example of the consequences on reducing production/Quality costs. Fortunately no one died with the collapse of the balding as construction was in a final stage of production, so a major disaster was avoided, the entire structure simply fell, like a deck of cards... Somehow the foundations gave way but the building itself continues almost solid, the concrete used on the actual building at lest looks solid enough.

Check this out : http://zurcapital.blogspot.com/2010/...em-as-sua.html

Re: The consequences of cost reduction
 

Does anyone fancy a pint?

Re: The consequences of cost reduction
 

oh go on then pour us one and make sure its got a whisky chaser sat next to it...:thumbup:

Re: The consequences of cost reduction
 

I'll drink to the collapse of the balding.

Re: The consequences of cost reduction
 

The collapse of what....?? Oooooh - you clicked the link...

Re: The consequences of cost reduction
 

Bit random....and several months past the last time this story made an appearance...I thought this at least might have been about the Foxconn suicides, that and them not paying money to families of those who commit suicide....

Re: The consequences of cost reduction
 

Hey I'm dying of thirst over here..

Re: The consequences of cost reduction
 

:beer::beer:

Re: The consequences of cost reduction
 

thanks Sally, have one yourself..:drinkwine:

Re: The consequences of cost reduction
 

so with the balding on its side which is the door to the bar?

Re: The consequences of cost reduction
 

As my hairline is rapidly receding, I will also drink a coupla pints to the collapse of the balding...

Re: The consequences of cost reduction
 

And besides which, its China mate..are you really suprised...the land of cheap labor...

So no blaming the western world for any of this...(I'm not saying you were)..

Re: The consequences of cost reduction
 

I am waiting for Saturday, but will probably get some practice in on Friday.

Re: The consequences of cost reduction
 

Well, I think I found the explanation for this http://www.engineering.com/Library/A...fall-over.aspx

Re: The consequences of cost reduction
 

Nah thanks, don't fancy a pint of cost reduction Pabst Blue Ribbon - my taste buds tend to collapse on sheer lack of quality control... even if its for 49c/pint. That's very socially irresponsible of me to support such a brewery...

Rain check - perhaps another time, another beer.

Re: The consequences of cost reduction
 

I dunno - quite Avante Garde for building a building to look like its on its side don't you think?? Clever Trevors, the lot of them.
I wonder what the interior is like.

Re: The consequences of cost reduction
 

Like the level in Tomb Raider II where she's in the sunken ship.

Re: The consequences of cost reduction
 

...or like the Queen Elizabeth in HK Harbour.

Re: The consequences of cost reduction
 

Now I know why those things are called flats.

Re: The consequences of cost reduction
 

My Steamworks beer has arrived, just in time.

Re: The consequences of cost reduction
 

Why not? We're the chief consumers of Chinese-made goods, and we buy them because they ARE cheap. Without us, the Chinese would be hungrier, possibly, but they wouldn't be in such harsh working conditions.

Do you think the average American shopper gives a shit about this?

http://news.sky.com/skynews/Home/Bus...15642178?f=rss

It sickens me.

Re: The consequences of cost reduction
 

Good point.

Re: The consequences of cost reduction
 

I know exactly what you are saying...but there is a solution...I buy american every chance I get, and yes you can if you try and are willing to spend a bit extra, but its worth it, dont you think...

Oh and I buy English made too...have to support the home economy...

The rest of it is economics..and yes we are all responsible for that..

Re: The consequences of cost reduction
 

I hate to propagate the lame first post, but you do raise an interesting point. In this country, we have labor standards (minimum wage, minimum age, high safety standards, etc) and aggressive liability practices that scare most domestic manufacturers into producing reasonably safe products. But as a consequence, we have created an environment where other countries (in this case, China) can export products to us at a competitive price. These countries can have any labor laws they want, or none at all ... employing child labor for peanuts if they so desire. And they can produce relative crap ...

I think a bold approach to this would be to tax imports from foreign companies based on their compliance with US standards - but I can't imagine how one would implement such a strategy in a practical manner.

Re: The consequences of cost reduction
 

I'd for all for it, but it isn't going to happen so long as China keeps buying up our debt.

Re: The consequences of cost reduction
 

There's a song about that:

Re: The consequences of cost reduction
 

Excellent!

Re: The consequences of cost reduction
 

+1!

So ... mind idly thinking about this ... cost of living in US = x; cost of living in China = y. Thus, equivalent minimum wage in China 'should be' (US minimum wage * y / x ). Assuming 'm' percent of a product's cost is labor, modified cost of Chinese product = (original cost * m ) * ... <ok, it's late and I can't be bothered to carry this on right now, but you get the idea ... :) > .... Then factor in a 'pollution' penalty since China does not have to comply with costly pollution restrictions, and a 'morality' penalty for employing child labor, and maybe a few other factors. I wonder just how much cheaper your Fisher-Price toy would be then?

Re: The consequences of cost reduction
 

I think the answer is that the West could do with fewer Fisher-Price toys and the East with more food and shelter. This is not something that corporations and governments are going to solve - what is in it for them? This is something individuals must do on their own. I mean, hasn't everyone heard of garage sales? where you can buy older toys that last longer than the new shite? I fear that the younger generations are too far gone with electronica and immediate gratification so that simple toys and books are no longer enough.