China and India together have 7-times as many people as the United States. Larger populations will tend to produce more variation, and many of these variations will be better equipped to fill specific niches in the market. Therefore they are not just equipped with cheaper labor, but inevitably with greater amounts of innovation as well. Furthermore, they will likely find that many of the same innovations as found in western nations suit their purposes as well. After all they *are* human. So these cheaper products will have many of the same functions as those found elsewhere, will entice the same subset of consumers, and will therefore compete DIRECTLY for the same revenues.
The language barrier is the only thing protecting western markets. Like sex, it is language that most sharply divides people, rather more than race or culture. People who do not speak the same language are very unlikely to have offspring. The market is analogous: products intended for english-speaking people are unlikely to penetrate the mandarin or hindi markets, products intended for mandarin-speaking people are unlikely to penetrate english or hindi markets, and products intended for hindi-speaking people are unlikely to penetrate english or mandarin markets.
But the world has many people who are bilingual. Choice of language might be an option on many products, eliminating language as an effective barrier.
Current Events » in reply to Beijing auto show.........
re: Slave labor isn't the only thing you should be worried about
