4 ms·
Because the minimum wage in brazil is 25x higher than the chinese...
by eduardordm 14y ago
Because the minimum wage in brazil is 25x higher than the chinese...
- jessaustin 14y agoA) 25x? I'd have to be an idiot to believe that. The ratio isn't that high between the USA and China. B) When I looked this up the ratio between Brazil and China ranges between 2x and 3.5x. (China doesn't have a single national minimum.) C) On the more important comparison, PPP per capita GDP the ratio is less than 2x. It seems like 60% tariffs are still significant. We're all acquainted with the nearly universal practice of doing most manufacture in a cheap nation and then doing only the final assembly (or sometimes disassembly) in the importing nation. If this isn't what you're seeing you haven't been paying attention.
- seanmcdirmid 14y agoA factory worker at Foxcon these days is probably making 4K RMB a month, which is around $641. It is perhaps half to a third of what a similar factory worker would make in a first world country (if such jobs existed). Also, note that China also has a significant import tax, and you don't get around it by making things in China! Special export zones are complicated, so basically everything is imported. The markup on China vs. US is about 20-30% right now, not as bad as before. As noted in another thread, wages in Brazil aren't that great, its still a 2nd-world country. Perhaps ahead of China, but the growth vectors are fairly clear that China will overtake Brazil soon in per-person GDP and probably wages after that.
- hudell 14y agoThe problem is not what a company has to pay to their employees, but what they have to pay to the government for each employee they have.