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> I think Indian IT firms have gotten a free ride for many years using labor arbitrage. Got it. So Apple building the phone in China or Cisco building routers
by HenryTheHorse 9y ago
> I think Indian IT firms have gotten a free ride for many years using labor arbitrage.
Got it. So Apple building the phone in China or Cisco building routers in China is not labor arbitrage.
- rdl 9y agoThat was labor and environmental and capital control arbitrage, plus subsidy from the government for utilities. (Now there is legitimate supply chain advantage in the area while other advantages are vanishing, though.)
- toxican 9y agoBecause that's what they said or implied at all.
- bogomipz 9y agoNo, they are all labor arbitrage. Manufacturing labor arbitrage is just a little more sticky since China has the production facilities.