Tuesday, December 14, 2004

China in the modern economy by Lesther Therow.

Globalization and the role of china in the world economy.

China in the modern economy.

In terms of currency china 's contribution to world GDP is 4% . Japan about 11% (and US 15???).
In terms of PPP China is twice the size of Japan.
China's percapita Income = $870. US percapita Income = $40,000 in 2004.

So China has to grow trumedously for the next 100 years to even catch up with US..

"People become silly , when they start taking in to account the number of people in china" - Lesther.

There are three things that you can do .
1) Manufacture in china and sell to the US.
2) Manufacture in China and sell to chines.
3) Manufacture in US and sell to Chines. -- What can you sell to people with a percapita income of $870?? - Not many have figured this out yet.

No Universal Intellectual rights laws. They are pesent only in the Developed world. (TRIPS is underway)
So a Chines man breaks no law in china if he uses any software that has been developed in US.

A fallacy of China pirating $10 billion worth of software.
Bill Gates "If you want to steal software steel my software"!!!

Cacun Failure of the Developed world to cut subsidies of agriculture resulted in the failure of the Confrence.
Fact: Agricutlure contributes less than 3% to american GDP and less than 1% are employed in agriculture.
US provides subsidies of billions dollars to its farmers.

America's contribution to worl GDP is one third of the World GDP $11,000 Billion.

Just imagine the leverage that US would have got , if Intellectuall rights issue was resolve with the Developing world.

Lester Therow.
You have a right time to
1) BUY
3) SELL.

Steave jobs - the worst business descision that he made was not to sell MaC OS.The Result is net worth of $ 2 billion, where as bill gates is valued at $50 billion in 2004.