Unit 4 Emerging Markets and Competitiveness

1. Competitiveness 1980s – Japan overtook USA in car manufacturing – not with subsidies or cheap labour – but with innovation – lean manufacturing ( Toyota Production System - any part of production that didn’t have intrinsic value for the end customer is wasteful – lots of middle - management redundancies) worlds centre of economic gravity – shifting towards emerging markets – societies and economies going through rapid economic growth and industrialisation – up to 40 in 2010 led by China / India. ASEAN – China FTA is the largest regional emerging market. Jan 2010. They are no longer content with being source of cheap hands and low cost brains – innovate on their own terms – in healthcare, cars, telecoms. Cutting costs by up to 90%. Redesigning business processes. READ ECONOMIST APR 17 TH 2010 SPECIAL REPORT ON INNOVATION IN EMERGING MARKETS