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IP theft is a long-term risk, while cheap labor and access to the Chinese market are short term benefits. Company executives may have short term incentives, an
by ahi 8y ago
IP theft is a long-term risk, while cheap labor and access to the Chinese market are short term benefits.
Company executives may have short term incentives, and little interest in the long term health of their organizations.
Company executives have to compete with executives willing to compromise their company's long term health in the short term.
- HillaryBriss 8y agoWell said. It reminds me of Warren Buffet's statements about insurance companies and excessively low premiums. The well-run insurers are always competing against the most poorly run, excessively risky insurers. Some of these poorly run companies offer irrationally low premiums and gain lots of customers because of it -- but then go bankrupt. OTOH, well run insurers that used sound underwriting principles and charged rational premiums end up with fewer customers.