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Beyond Cheap Labor: Lessons for Developing Economies

Beyond Cheap Labor: Lessons for Developing Economies The specter of China and it s massive fleet of low-cost laborers haunts developing economies worldwide. However, for middle-income countries, focusing on cheap labor is not the answer for sustained economic growth, according to The McKinsey Quarterly. Using Mexico as a basis for discussion, this report offers alternative strategies for successful competition. More effective routes to economic development involve transitioning to higher-value-added industries, exploiting comparative advantage, and pursuing reforms that increase entrepreneurship and encourage competition. In short, middle-income countries would do best to avoid panicked responses to offshoring; as the authors warn, Don t overestimate the value of low-wage employment. – YaleGlobal

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Asian Markets Mostly Higher

Asian Markets Mostly Higher CANBERA (dpa-AFX) - Asian stock markets are mostly higher on Monday amid thin holiday trade across the Asian region, following broadly positive cues from Wall Street on Thursday on upbeat jobs and manufacturing data. Traders are also upbeat about a stimulus-fuelled global economic recovery after US President Joe Biden s speech regarding his $2 trillion infrastructure and economic recovery plan. However, worries about rising coronavirus cases and extension of lockdown restrictions are limiting market gains. Asian markets closed mostly higher on Friday. The Australian stock market is closed on Monday on account of Easter Monday. Australian stocks closed modestly higher on Thursday ahead of the Easter weekend. In the currency market, the Aussie dollar is trading at $0.762 on Monday.

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Japanese Market Extending Gains

Japanese Market Extending Gains TOKYO (dpa-AFX) - Japanese stock market is higher on Monday, extending gains of the previous two sessions, with the Nikkei 225 breaking above the 30,000 level to three-week highs. The cues from Wall Street on Thursday were broadly positive on upbeat jobs and manufacturing data. The benchmark Nikkei 225 Index is gaining 245.98 points or 0.82 percent to 30,099.98, after touching a high of 30,195.00 earlier. Japanese shares ended sharply higher on Friday. Market heavyweight SoftBank Group is up more than 1 percent and Uniqlo operator Fast Retailing is adding almost 3 percent. Among automakers, Honda is gaining almost 1 percent, while Toyota is flat. The major exporters are also higher. Panasonic is edging down 0.4 percent, while Mitsubishi Electric is edging up 0.1 percent. Sony and Canon are edging up 0.4 percent each.

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Suzuki Motor starts production at third unit in Ahmedabad

Maruti Suzuki has announced that Suzuki Motor has finished the construction of the third plant at its Ahmedabad manufacturing facility and started production from April 2021.The new unit (Plant C) has an annual production capacity of 2.

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japan shares: Nikkei hits 2-week high on hopes of earnings recovery, chip output hike

japan shares: Nikkei hits 2-week high on hopes of earnings recovery, chip output hike
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