SlideShare ist ein Scribd-Unternehmen logo
1 von 12
Downloaden Sie, um offline zu lesen
LOW COST PRODUCING COUNTRIES
BY: PAUL YOUNG, CPA, CGA
PAUL YOUNG BIO
 Contact: paul_young_cga@Hotmail.com
 25+ years of experience
 Academia
 Corporate Reporting and Analysis
 Internal Audit and Risk Management
 Cost Control and Management
 Re-engineering business process
 IT Financial Performance and Risk Management Solutions
CHARACTERISTICS OF LOW COST PRODUCING COUNTRIES
 Many low cost producing countries
 Government restrictions on imports
 Labor laws that do not protect workers
 Lapse Environmental rules
 Water Treatment
 Emissions
 Land management
TOP LOW COST PRODUCING COUNTRIES
Southeast Asia
 Bangladesh
 Cambodia
 India
 Indonesia
 Malaysia
 Pakistan
 Phillipines
 Sri Lanka
 Thailand
 Vietnam
Source: http://www.businessinsider.com/kpmg-countries-manufacturers-low-cost-china-2011-9#bangladesh-1
NORTH AMERICA / MEXICAN
 Mexico has been able to pull itself out of an economic and social slump by bringing regulation change through continued
support from NAFTA. Mexico’s investment in their infrastructure garners great support for investment in manufacturing. For
example, the 2014-2018 Infrastructure Reform promises to use 598 billion dollars to implement 743 infrastructure projects.
262 of those projects will be focused on energy improvements, and 233 projects are catered towards communications and
transportation. Increased productivity, accessibility, and transport will build the maquila workforce and enable more skilled
laborers to accrue necessary knowledge about industrial culture. As the Mexican infrastructure strengthens, maquila workers
are able to contribute to their growing economy and make room for an up-and-coming middle class.
 Mexico has an educated workforce with the ability to surpass traditional maquiladoras and work with advanced mechanical
operations. Young professionals benefit from manufacturing jobs and hold positions such as factory workers, programmers,
and operations management positions. Mexican workers are provided with opportunities to succeed in their careers, as
heightened manufacturing production maintains the country’s growing exports. With a new social status, Mexican quality of
life improves and more attention is given to work as the middle class contributes to the Mexican economy. But good news
for the new Mexican middle class is also good news for the U.S. labor force.
Source - http://offshoregroup.com/2016/09/01/mexican-manufacturing-catalyst-u-s-economic-growth/
COST COMPETITIVE INDEX
Source: - https://www2.deloitte.com/content/dam/Deloitte/global/Documents/Manufacturing/gx-global-mfg-
competitiveness-index-2016.pdf
LOW COST PRODUCING COUNTRIES /CHINA
 The exodus of factories moving out of China in search of lower-cost options in southeast and central
Asia is accelerating, as manufacturers face increased pressure to reduce unit costs.
 Few industries have been spared amid the search for cheaper manufacturing alternatives, with rising
Chinese labour rates cited as a major concern affecting industries as diverse as apparel and high-
technology.
Source: http://www.scmp.com/business/companies/article/1863709/manufacturers-step-search-low-cost-
alternative-china
TOP COUNTRIES – LOWEST LABOR RATES
 1 – Madagascar $0.18 Hour
 2 – Bangladesh $0.23/Hour
 3 – Pakistan $0.32/Hour
 4 – Ghana $0.32/Hour
 5 – Vietnam $0.39/Hour
 6 – India $0.48/Hour
 7 – Kenya $0.50/Hour
 8 – Senegal $0.52/Hour
 9 – Sri Lanka $0.62/Hour
 10 – Egypt $0.80/Hour
Source: http://www.therichest.com/rich-list/poorest-list/countries-with-the-cheapest-labor/
LABOR / MINIMUM WAGES
 Many developed countries have established labor laws for minimum wages. Minimum wages for
developed countries tend to be higher than those of low cost producing countries.
 Vietnam monthly minimum wages is about $145 month which is far less than say Canada at
$2,080/month
Source: http://www.ecotripsos.com/highestminimumwage/
SOCIAL SPENDING/GDP
 Social spending
 Healthcare
 Education
 Pensions
 Infrastructure
 Child tax benefits/Child Care
 Defense
 Environment
SOCIAL SPENDING / GDP
Source: https://www.oecd.org/els/soc/OECD2014-Social-Expenditure-Update-Nov2014-8pages.pdf
WHAT CAN BE DONE
Areas of focus
 Trade/FIPA
 Fair Trade Deals
 Adopting BEPS
 New transfer pricing Rules
 Innovation
 Investment in education
 Expand opportunities
 Advance manufacturing
 Information technology
 Expert Farming
 Extraction/refining
 Clean Technology

Weitere ähnliche Inhalte

Was ist angesagt?

Week 43 in manufacturing news
Week 43 in manufacturing newsWeek 43 in manufacturing news
Week 43 in manufacturing newsMRPeasy
 
Investment in Fashion industry
Investment in Fashion industryInvestment in Fashion industry
Investment in Fashion industryProColombia
 
The U.S. - China Tradewar: A Boon for Southeast Asia
The U.S. - China Tradewar: A Boon for Southeast AsiaThe U.S. - China Tradewar: A Boon for Southeast Asia
The U.S. - China Tradewar: A Boon for Southeast AsiaGolden Gate Ventures
 
Pilat eu spri new avenues innovation policy 9 june 2016
Pilat eu spri new avenues innovation policy 9 june 2016Pilat eu spri new avenues innovation policy 9 june 2016
Pilat eu spri new avenues innovation policy 9 june 2016Dirk Pilat
 
One day when i grow up
One day when i grow upOne day when i grow up
One day when i grow upeduKazi
 
Rebuilding American Manufacturing Powerhouse | Sridhar Kota
Rebuilding American Manufacturing Powerhouse | Sridhar KotaRebuilding American Manufacturing Powerhouse | Sridhar Kota
Rebuilding American Manufacturing Powerhouse | Sridhar Kotacoldcrease3412
 
Business environment, Royal Bank of Scotland
Business environment, Royal Bank of ScotlandBusiness environment, Royal Bank of Scotland
Business environment, Royal Bank of ScotlandSaleh Roudi
 
Alisee de Tonnac's opening speech for Seedstars Summit 2015.
Alisee de Tonnac's opening speech for Seedstars Summit 2015.Alisee de Tonnac's opening speech for Seedstars Summit 2015.
Alisee de Tonnac's opening speech for Seedstars Summit 2015.Seedstars World
 
Perry mistry prospecsv.org_1_cleantechmanufacturing-in-sanjose
Perry mistry prospecsv.org_1_cleantechmanufacturing-in-sanjosePerry mistry prospecsv.org_1_cleantechmanufacturing-in-sanjose
Perry mistry prospecsv.org_1_cleantechmanufacturing-in-sanjosePurushottam M
 
Metalworking sector 2016
Metalworking sector 2016Metalworking sector 2016
Metalworking sector 2016ProColombia
 
challenges in global production in covid-19
challenges in global production in covid-19challenges in global production in covid-19
challenges in global production in covid-19Aashvivijay
 
Job Quality - USA vs Canada - January 2020
Job Quality - USA vs Canada - January 2020Job Quality - USA vs Canada - January 2020
Job Quality - USA vs Canada - January 2020paul young cpa, cga
 
The Global Productivity Slowdown, Technology Diffusion and Public Policy
The Global Productivity Slowdown, Technology Diffusion and Public PolicyThe Global Productivity Slowdown, Technology Diffusion and Public Policy
The Global Productivity Slowdown, Technology Diffusion and Public PolicyStructuralpolicyanalysis
 
Manufacturing, Import & Export - comparing USA and India ppt
Manufacturing, Import & Export - comparing USA and India pptManufacturing, Import & Export - comparing USA and India ppt
Manufacturing, Import & Export - comparing USA and India pptHarbans Buttar, MBA
 
Manufacturing, Import & Export - Comparision between USA & India ppt
Manufacturing, Import & Export - Comparision between USA & India pptManufacturing, Import & Export - Comparision between USA & India ppt
Manufacturing, Import & Export - Comparision between USA & India pptHarbans Buttar, MBA
 
CAMBRIDGE GEOGRAPHY A2 REVISION - PRODUCTION, LOCATION AND CHANGE: 11.3 MANUF...
CAMBRIDGE GEOGRAPHY A2 REVISION - PRODUCTION, LOCATION AND CHANGE: 11.3 MANUF...CAMBRIDGE GEOGRAPHY A2 REVISION - PRODUCTION, LOCATION AND CHANGE: 11.3 MANUF...
CAMBRIDGE GEOGRAPHY A2 REVISION - PRODUCTION, LOCATION AND CHANGE: 11.3 MANUF...George Dumitrache
 
Automotive 2016 COLOMBIA
Automotive 2016 COLOMBIAAutomotive 2016 COLOMBIA
Automotive 2016 COLOMBIAProColombia
 
Lecture 7 -3
Lecture  7 -3Lecture  7 -3
Lecture 7 -3barkasivv
 

Was ist angesagt? (20)

2016 09-29 gci summit v10
2016 09-29 gci summit v102016 09-29 gci summit v10
2016 09-29 gci summit v10
 
Week 43 in manufacturing news
Week 43 in manufacturing newsWeek 43 in manufacturing news
Week 43 in manufacturing news
 
Investment in Fashion industry
Investment in Fashion industryInvestment in Fashion industry
Investment in Fashion industry
 
The U.S. - China Tradewar: A Boon for Southeast Asia
The U.S. - China Tradewar: A Boon for Southeast AsiaThe U.S. - China Tradewar: A Boon for Southeast Asia
The U.S. - China Tradewar: A Boon for Southeast Asia
 
Pilat eu spri new avenues innovation policy 9 june 2016
Pilat eu spri new avenues innovation policy 9 june 2016Pilat eu spri new avenues innovation policy 9 june 2016
Pilat eu spri new avenues innovation policy 9 june 2016
 
One day when i grow up
One day when i grow upOne day when i grow up
One day when i grow up
 
Global Cities Initiative | Salt Lake City
Global Cities Initiative | Salt Lake CityGlobal Cities Initiative | Salt Lake City
Global Cities Initiative | Salt Lake City
 
Rebuilding American Manufacturing Powerhouse | Sridhar Kota
Rebuilding American Manufacturing Powerhouse | Sridhar KotaRebuilding American Manufacturing Powerhouse | Sridhar Kota
Rebuilding American Manufacturing Powerhouse | Sridhar Kota
 
Business environment, Royal Bank of Scotland
Business environment, Royal Bank of ScotlandBusiness environment, Royal Bank of Scotland
Business environment, Royal Bank of Scotland
 
Alisee de Tonnac's opening speech for Seedstars Summit 2015.
Alisee de Tonnac's opening speech for Seedstars Summit 2015.Alisee de Tonnac's opening speech for Seedstars Summit 2015.
Alisee de Tonnac's opening speech for Seedstars Summit 2015.
 
Perry mistry prospecsv.org_1_cleantechmanufacturing-in-sanjose
Perry mistry prospecsv.org_1_cleantechmanufacturing-in-sanjosePerry mistry prospecsv.org_1_cleantechmanufacturing-in-sanjose
Perry mistry prospecsv.org_1_cleantechmanufacturing-in-sanjose
 
Metalworking sector 2016
Metalworking sector 2016Metalworking sector 2016
Metalworking sector 2016
 
challenges in global production in covid-19
challenges in global production in covid-19challenges in global production in covid-19
challenges in global production in covid-19
 
Job Quality - USA vs Canada - January 2020
Job Quality - USA vs Canada - January 2020Job Quality - USA vs Canada - January 2020
Job Quality - USA vs Canada - January 2020
 
The Global Productivity Slowdown, Technology Diffusion and Public Policy
The Global Productivity Slowdown, Technology Diffusion and Public PolicyThe Global Productivity Slowdown, Technology Diffusion and Public Policy
The Global Productivity Slowdown, Technology Diffusion and Public Policy
 
Manufacturing, Import & Export - comparing USA and India ppt
Manufacturing, Import & Export - comparing USA and India pptManufacturing, Import & Export - comparing USA and India ppt
Manufacturing, Import & Export - comparing USA and India ppt
 
Manufacturing, Import & Export - Comparision between USA & India ppt
Manufacturing, Import & Export - Comparision between USA & India pptManufacturing, Import & Export - Comparision between USA & India ppt
Manufacturing, Import & Export - Comparision between USA & India ppt
 
CAMBRIDGE GEOGRAPHY A2 REVISION - PRODUCTION, LOCATION AND CHANGE: 11.3 MANUF...
CAMBRIDGE GEOGRAPHY A2 REVISION - PRODUCTION, LOCATION AND CHANGE: 11.3 MANUF...CAMBRIDGE GEOGRAPHY A2 REVISION - PRODUCTION, LOCATION AND CHANGE: 11.3 MANUF...
CAMBRIDGE GEOGRAPHY A2 REVISION - PRODUCTION, LOCATION AND CHANGE: 11.3 MANUF...
 
Automotive 2016 COLOMBIA
Automotive 2016 COLOMBIAAutomotive 2016 COLOMBIA
Automotive 2016 COLOMBIA
 
Lecture 7 -3
Lecture  7 -3Lecture  7 -3
Lecture 7 -3
 

Ähnlich wie Competing against Low Cost Producing Countries

Custom Molds Strategy Analysis Essay
Custom Molds Strategy Analysis EssayCustom Molds Strategy Analysis Essay
Custom Molds Strategy Analysis EssayAshley Davis
 
20221003 AMC WiM Final_External Edit.pdf
20221003 AMC WiM Final_External Edit.pdf20221003 AMC WiM Final_External Edit.pdf
20221003 AMC WiM Final_External Edit.pdfAidanMadiganCurtis1
 
Middlec Class and Canada -August 2022.pptx
Middlec Class and Canada -August 2022.pptxMiddlec Class and Canada -August 2022.pptx
Middlec Class and Canada -August 2022.pptxpaul young cpa, cga
 
United States manufacturing sector continues to face many challenges
United States manufacturing sector continues to face many challengesUnited States manufacturing sector continues to face many challenges
United States manufacturing sector continues to face many challengespaul young cpa, cga
 
Human Capital and Workforce Planning| Canada and the World
Human Capital and Workforce Planning| Canada and the WorldHuman Capital and Workforce Planning| Canada and the World
Human Capital and Workforce Planning| Canada and the Worldpaul young cpa, cga
 
Technology - What's next for Canada
Technology - What's next for CanadaTechnology - What's next for Canada
Technology - What's next for Canadapaul young cpa, cga
 
What is up with Stock Marklet| December 17, 2021
What is up with Stock Marklet| December 17, 2021What is up with Stock Marklet| December 17, 2021
What is up with Stock Marklet| December 17, 2021paul young cpa, cga
 
Article Fluid Power Journal 2015
Article Fluid Power Journal 2015Article Fluid Power Journal 2015
Article Fluid Power Journal 2015Trevor O'Malley
 
Wages and Job Vacancies - Canada - August 2022.pptx
Wages and Job Vacancies - Canada - August 2022.pptxWages and Job Vacancies - Canada - August 2022.pptx
Wages and Job Vacancies - Canada - August 2022.pptxpaul young cpa, cga
 
Construction Sector| The United States| Analysis and Commentary
Construction Sector| The United States| Analysis and CommentaryConstruction Sector| The United States| Analysis and Commentary
Construction Sector| The United States| Analysis and Commentarypaul young cpa, cga
 
Clean Technology| The Green Economy
Clean Technology| The Green EconomyClean Technology| The Green Economy
Clean Technology| The Green Economypaul young cpa, cga
 
What is next for the Provinces – Canada.pptx
What is next for the Provinces – Canada.pptxWhat is next for the Provinces – Canada.pptx
What is next for the Provinces – Canada.pptxpaul young cpa, cga
 
Technology Market| Canada and the World| February 2019
Technology Market| Canada and the World| February 2019Technology Market| Canada and the World| February 2019
Technology Market| Canada and the World| February 2019paul young cpa, cga
 
Trade and Foreign Relations| Canada
Trade and Foreign Relations| Canada Trade and Foreign Relations| Canada
Trade and Foreign Relations| Canada paul young cpa, cga
 
Wages and Job Vacancies - Canada - July 2022.pptx
Wages and Job Vacancies - Canada - July 2022.pptxWages and Job Vacancies - Canada - July 2022.pptx
Wages and Job Vacancies - Canada - July 2022.pptxpaul young cpa, cga
 
Covid 19: Industry Focus: The business impact to manufacturing & where to...
Covid 19: Industry Focus: The business impact to manufacturing & where to...Covid 19: Industry Focus: The business impact to manufacturing & where to...
Covid 19: Industry Focus: The business impact to manufacturing & where to...Darryl Judd
 
How the Public Sector Policies can support FDI and Economic Growth .pptx
How the Public Sector Policies can support FDI and Economic Growth .pptxHow the Public Sector Policies can support FDI and Economic Growth .pptx
How the Public Sector Policies can support FDI and Economic Growth .pptxpaul young cpa, cga
 
Slow Economic Growth - Canada.pptx
Slow Economic Growth - Canada.pptxSlow Economic Growth - Canada.pptx
Slow Economic Growth - Canada.pptxpaul young cpa, cga
 
What is up with Stock Marklet| November 26 2021
What is up with Stock Marklet| November 26 2021What is up with Stock Marklet| November 26 2021
What is up with Stock Marklet| November 26 2021paul young cpa, cga
 

Ähnlich wie Competing against Low Cost Producing Countries (20)

Custom Molds Strategy Analysis Essay
Custom Molds Strategy Analysis EssayCustom Molds Strategy Analysis Essay
Custom Molds Strategy Analysis Essay
 
20221003 AMC WiM Final_External Edit.pdf
20221003 AMC WiM Final_External Edit.pdf20221003 AMC WiM Final_External Edit.pdf
20221003 AMC WiM Final_External Edit.pdf
 
Middlec Class and Canada -August 2022.pptx
Middlec Class and Canada -August 2022.pptxMiddlec Class and Canada -August 2022.pptx
Middlec Class and Canada -August 2022.pptx
 
United States manufacturing sector continues to face many challenges
United States manufacturing sector continues to face many challengesUnited States manufacturing sector continues to face many challenges
United States manufacturing sector continues to face many challenges
 
Human Capital and Workforce Planning| Canada and the World
Human Capital and Workforce Planning| Canada and the WorldHuman Capital and Workforce Planning| Canada and the World
Human Capital and Workforce Planning| Canada and the World
 
Technology - What's next for Canada
Technology - What's next for CanadaTechnology - What's next for Canada
Technology - What's next for Canada
 
What is up with Stock Marklet| December 17, 2021
What is up with Stock Marklet| December 17, 2021What is up with Stock Marklet| December 17, 2021
What is up with Stock Marklet| December 17, 2021
 
Article Fluid Power Journal 2015
Article Fluid Power Journal 2015Article Fluid Power Journal 2015
Article Fluid Power Journal 2015
 
Wages and Job Vacancies - Canada - August 2022.pptx
Wages and Job Vacancies - Canada - August 2022.pptxWages and Job Vacancies - Canada - August 2022.pptx
Wages and Job Vacancies - Canada - August 2022.pptx
 
Construction Sector| The United States| Analysis and Commentary
Construction Sector| The United States| Analysis and CommentaryConstruction Sector| The United States| Analysis and Commentary
Construction Sector| The United States| Analysis and Commentary
 
Clean Technology| The Green Economy
Clean Technology| The Green EconomyClean Technology| The Green Economy
Clean Technology| The Green Economy
 
What is next for the Provinces – Canada.pptx
What is next for the Provinces – Canada.pptxWhat is next for the Provinces – Canada.pptx
What is next for the Provinces – Canada.pptx
 
Powering Advanced Industries: State by State
Powering Advanced Industries: State by StatePowering Advanced Industries: State by State
Powering Advanced Industries: State by State
 
Technology Market| Canada and the World| February 2019
Technology Market| Canada and the World| February 2019Technology Market| Canada and the World| February 2019
Technology Market| Canada and the World| February 2019
 
Trade and Foreign Relations| Canada
Trade and Foreign Relations| Canada Trade and Foreign Relations| Canada
Trade and Foreign Relations| Canada
 
Wages and Job Vacancies - Canada - July 2022.pptx
Wages and Job Vacancies - Canada - July 2022.pptxWages and Job Vacancies - Canada - July 2022.pptx
Wages and Job Vacancies - Canada - July 2022.pptx
 
Covid 19: Industry Focus: The business impact to manufacturing & where to...
Covid 19: Industry Focus: The business impact to manufacturing & where to...Covid 19: Industry Focus: The business impact to manufacturing & where to...
Covid 19: Industry Focus: The business impact to manufacturing & where to...
 
How the Public Sector Policies can support FDI and Economic Growth .pptx
How the Public Sector Policies can support FDI and Economic Growth .pptxHow the Public Sector Policies can support FDI and Economic Growth .pptx
How the Public Sector Policies can support FDI and Economic Growth .pptx
 
Slow Economic Growth - Canada.pptx
Slow Economic Growth - Canada.pptxSlow Economic Growth - Canada.pptx
Slow Economic Growth - Canada.pptx
 
What is up with Stock Marklet| November 26 2021
What is up with Stock Marklet| November 26 2021What is up with Stock Marklet| November 26 2021
What is up with Stock Marklet| November 26 2021
 

Mehr von paul young cpa, cga

Retail Sales and Consumer Spending Analysis and Commentary - July 2023.pptx
Retail Sales and Consumer Spending Analysis and Commentary - July 2023.pptxRetail Sales and Consumer Spending Analysis and Commentary - July 2023.pptx
Retail Sales and Consumer Spending Analysis and Commentary - July 2023.pptxpaul young cpa, cga
 
Addressing issues with the Public Sector Governance Model.pptx
Addressing issues with the Public Sector Governance Model.pptxAddressing issues with the Public Sector Governance Model.pptx
Addressing issues with the Public Sector Governance Model.pptxpaul young cpa, cga
 
Global Housing Market Analysis and Commentary- September 2023.pptx
Global Housing Market Analysis and Commentary- September 2023.pptxGlobal Housing Market Analysis and Commentary- September 2023.pptx
Global Housing Market Analysis and Commentary- September 2023.pptxpaul young cpa, cga
 
How to address the Cost of Living and Reduce inflation to Target 2 percent.pptx
How to address the Cost of Living and Reduce inflation to Target 2 percent.pptxHow to address the Cost of Living and Reduce inflation to Target 2 percent.pptx
How to address the Cost of Living and Reduce inflation to Target 2 percent.pptxpaul young cpa, cga
 
What is next for the Mining Sector.pptx
What is next for the Mining Sector.pptxWhat is next for the Mining Sector.pptx
What is next for the Mining Sector.pptxpaul young cpa, cga
 
Manufacturing Sector – United States – August 2023.pptx
Manufacturing Sector – United States – August 2023.pptxManufacturing Sector – United States – August 2023.pptx
Manufacturing Sector – United States – August 2023.pptxpaul young cpa, cga
 
Stock Market Analysis and Commentary for WE September 15 2023.pptx
Stock Market Analysis and Commentary for WE September 15 2023.pptxStock Market Analysis and Commentary for WE September 15 2023.pptx
Stock Market Analysis and Commentary for WE September 15 2023.pptxpaul young cpa, cga
 
Manufacturing Sector – Canada – September 2023.pptx
Manufacturing Sector – Canada – September 2023.pptxManufacturing Sector – Canada – September 2023.pptx
Manufacturing Sector – Canada – September 2023.pptxpaul young cpa, cga
 
Electricity Analysis - Canada and the OECD - June 2023.pptx
Electricity Analysis - Canada and the OECD - June 2023.pptxElectricity Analysis - Canada and the OECD - June 2023.pptx
Electricity Analysis - Canada and the OECD - June 2023.pptxpaul young cpa, cga
 
Logistics Warehousing Transportation and Distrbution Analysis and Commentary ...
Logistics Warehousing Transportation and Distrbution Analysis and Commentary ...Logistics Warehousing Transportation and Distrbution Analysis and Commentary ...
Logistics Warehousing Transportation and Distrbution Analysis and Commentary ...paul young cpa, cga
 
Retail Sales and Consumer Spending Analysis and Commentary - United States - ...
Retail Sales and Consumer Spending Analysis and Commentary - United States - ...Retail Sales and Consumer Spending Analysis and Commentary - United States - ...
Retail Sales and Consumer Spending Analysis and Commentary - United States - ...paul young cpa, cga
 
How to improve the Governance Model for the Public Sector - United States - S...
How to improve the Governance Model for the Public Sector - United States - S...How to improve the Governance Model for the Public Sector - United States - S...
How to improve the Governance Model for the Public Sector - United States - S...paul young cpa, cga
 
What is next for Agriculture Sector - August 2023.pptx
What is next for Agriculture Sector - August 2023.pptxWhat is next for Agriculture Sector - August 2023.pptx
What is next for Agriculture Sector - August 2023.pptxpaul young cpa, cga
 
Biotech Pharmaceutical Medical Equipment and Supplies - Analysis - September ...
Biotech Pharmaceutical Medical Equipment and Supplies - Analysis - September ...Biotech Pharmaceutical Medical Equipment and Supplies - Analysis - September ...
Biotech Pharmaceutical Medical Equipment and Supplies - Analysis - September ...paul young cpa, cga
 
Better Public Safety Management using Analytics - September 2023.pptx
Better Public Safety Management using Analytics - September 2023.pptxBetter Public Safety Management using Analytics - September 2023.pptx
Better Public Safety Management using Analytics - September 2023.pptxpaul young cpa, cga
 
Workforce Planning and Employment Analysis - August 2023.pptx
Workforce Planning and Employment Analysis - August 2023.pptxWorkforce Planning and Employment Analysis - August 2023.pptx
Workforce Planning and Employment Analysis - August 2023.pptxpaul young cpa, cga
 
Global Automotive - Analysis and Commentary - August 2023.pptx
Global Automotive - Analysis and Commentary - August 2023.pptxGlobal Automotive - Analysis and Commentary - August 2023.pptx
Global Automotive - Analysis and Commentary - August 2023.pptxpaul young cpa, cga
 
Global (Mining Oil and Gas Forestry and Agriculture) Analysis and Commentary ...
Global (Mining Oil and Gas Forestry and Agriculture) Analysis and Commentary ...Global (Mining Oil and Gas Forestry and Agriculture) Analysis and Commentary ...
Global (Mining Oil and Gas Forestry and Agriculture) Analysis and Commentary ...paul young cpa, cga
 
World Merchandise Trade – September 2023.pptx
World Merchandise Trade – September 2023.pptxWorld Merchandise Trade – September 2023.pptx
World Merchandise Trade – September 2023.pptxpaul young cpa, cga
 
What is next for the Forestry Sector and Lumber Production - September 2023.pptx
What is next for the Forestry Sector and Lumber Production - September 2023.pptxWhat is next for the Forestry Sector and Lumber Production - September 2023.pptx
What is next for the Forestry Sector and Lumber Production - September 2023.pptxpaul young cpa, cga
 

Mehr von paul young cpa, cga (20)

Retail Sales and Consumer Spending Analysis and Commentary - July 2023.pptx
Retail Sales and Consumer Spending Analysis and Commentary - July 2023.pptxRetail Sales and Consumer Spending Analysis and Commentary - July 2023.pptx
Retail Sales and Consumer Spending Analysis and Commentary - July 2023.pptx
 
Addressing issues with the Public Sector Governance Model.pptx
Addressing issues with the Public Sector Governance Model.pptxAddressing issues with the Public Sector Governance Model.pptx
Addressing issues with the Public Sector Governance Model.pptx
 
Global Housing Market Analysis and Commentary- September 2023.pptx
Global Housing Market Analysis and Commentary- September 2023.pptxGlobal Housing Market Analysis and Commentary- September 2023.pptx
Global Housing Market Analysis and Commentary- September 2023.pptx
 
How to address the Cost of Living and Reduce inflation to Target 2 percent.pptx
How to address the Cost of Living and Reduce inflation to Target 2 percent.pptxHow to address the Cost of Living and Reduce inflation to Target 2 percent.pptx
How to address the Cost of Living and Reduce inflation to Target 2 percent.pptx
 
What is next for the Mining Sector.pptx
What is next for the Mining Sector.pptxWhat is next for the Mining Sector.pptx
What is next for the Mining Sector.pptx
 
Manufacturing Sector – United States – August 2023.pptx
Manufacturing Sector – United States – August 2023.pptxManufacturing Sector – United States – August 2023.pptx
Manufacturing Sector – United States – August 2023.pptx
 
Stock Market Analysis and Commentary for WE September 15 2023.pptx
Stock Market Analysis and Commentary for WE September 15 2023.pptxStock Market Analysis and Commentary for WE September 15 2023.pptx
Stock Market Analysis and Commentary for WE September 15 2023.pptx
 
Manufacturing Sector – Canada – September 2023.pptx
Manufacturing Sector – Canada – September 2023.pptxManufacturing Sector – Canada – September 2023.pptx
Manufacturing Sector – Canada – September 2023.pptx
 
Electricity Analysis - Canada and the OECD - June 2023.pptx
Electricity Analysis - Canada and the OECD - June 2023.pptxElectricity Analysis - Canada and the OECD - June 2023.pptx
Electricity Analysis - Canada and the OECD - June 2023.pptx
 
Logistics Warehousing Transportation and Distrbution Analysis and Commentary ...
Logistics Warehousing Transportation and Distrbution Analysis and Commentary ...Logistics Warehousing Transportation and Distrbution Analysis and Commentary ...
Logistics Warehousing Transportation and Distrbution Analysis and Commentary ...
 
Retail Sales and Consumer Spending Analysis and Commentary - United States - ...
Retail Sales and Consumer Spending Analysis and Commentary - United States - ...Retail Sales and Consumer Spending Analysis and Commentary - United States - ...
Retail Sales and Consumer Spending Analysis and Commentary - United States - ...
 
How to improve the Governance Model for the Public Sector - United States - S...
How to improve the Governance Model for the Public Sector - United States - S...How to improve the Governance Model for the Public Sector - United States - S...
How to improve the Governance Model for the Public Sector - United States - S...
 
What is next for Agriculture Sector - August 2023.pptx
What is next for Agriculture Sector - August 2023.pptxWhat is next for Agriculture Sector - August 2023.pptx
What is next for Agriculture Sector - August 2023.pptx
 
Biotech Pharmaceutical Medical Equipment and Supplies - Analysis - September ...
Biotech Pharmaceutical Medical Equipment and Supplies - Analysis - September ...Biotech Pharmaceutical Medical Equipment and Supplies - Analysis - September ...
Biotech Pharmaceutical Medical Equipment and Supplies - Analysis - September ...
 
Better Public Safety Management using Analytics - September 2023.pptx
Better Public Safety Management using Analytics - September 2023.pptxBetter Public Safety Management using Analytics - September 2023.pptx
Better Public Safety Management using Analytics - September 2023.pptx
 
Workforce Planning and Employment Analysis - August 2023.pptx
Workforce Planning and Employment Analysis - August 2023.pptxWorkforce Planning and Employment Analysis - August 2023.pptx
Workforce Planning and Employment Analysis - August 2023.pptx
 
Global Automotive - Analysis and Commentary - August 2023.pptx
Global Automotive - Analysis and Commentary - August 2023.pptxGlobal Automotive - Analysis and Commentary - August 2023.pptx
Global Automotive - Analysis and Commentary - August 2023.pptx
 
Global (Mining Oil and Gas Forestry and Agriculture) Analysis and Commentary ...
Global (Mining Oil and Gas Forestry and Agriculture) Analysis and Commentary ...Global (Mining Oil and Gas Forestry and Agriculture) Analysis and Commentary ...
Global (Mining Oil and Gas Forestry and Agriculture) Analysis and Commentary ...
 
World Merchandise Trade – September 2023.pptx
World Merchandise Trade – September 2023.pptxWorld Merchandise Trade – September 2023.pptx
World Merchandise Trade – September 2023.pptx
 
What is next for the Forestry Sector and Lumber Production - September 2023.pptx
What is next for the Forestry Sector and Lumber Production - September 2023.pptxWhat is next for the Forestry Sector and Lumber Production - September 2023.pptx
What is next for the Forestry Sector and Lumber Production - September 2023.pptx
 

Kürzlich hochgeladen

The unequal battle of inflation and the appropriate sustainable solution | Eu...
The unequal battle of inflation and the appropriate sustainable solution | Eu...The unequal battle of inflation and the appropriate sustainable solution | Eu...
The unequal battle of inflation and the appropriate sustainable solution | Eu...Antonis Zairis
 
Remembering my Totem _Unity is Strength_ growing in Bophuthatswana_Matthews B...
Remembering my Totem _Unity is Strength_ growing in Bophuthatswana_Matthews B...Remembering my Totem _Unity is Strength_ growing in Bophuthatswana_Matthews B...
Remembering my Totem _Unity is Strength_ growing in Bophuthatswana_Matthews B...Matthews Bantsijang
 
Solution manual for Intermediate Accounting, 11th Edition by David Spiceland...
Solution manual for  Intermediate Accounting, 11th Edition by David Spiceland...Solution manual for  Intermediate Accounting, 11th Edition by David Spiceland...
Solution manual for Intermediate Accounting, 11th Edition by David Spiceland...mwangimwangi222
 
Lundin Gold March 2024 Corporate Presentation - PDAC v1.pdf
Lundin Gold March 2024 Corporate Presentation - PDAC v1.pdfLundin Gold March 2024 Corporate Presentation - PDAC v1.pdf
Lundin Gold March 2024 Corporate Presentation - PDAC v1.pdfAdnet Communications
 
India Economic Survey Complete for the year of 2022 to 2023
India Economic Survey Complete for the year of 2022 to 2023India Economic Survey Complete for the year of 2022 to 2023
India Economic Survey Complete for the year of 2022 to 2023SkillCircle
 
20240314 Calibre March 2024 Investor Presentation (FINAL).pdf
20240314 Calibre March 2024 Investor Presentation (FINAL).pdf20240314 Calibre March 2024 Investor Presentation (FINAL).pdf
20240314 Calibre March 2024 Investor Presentation (FINAL).pdfAdnet Communications
 
Work and Pensions report into UK corporate DB funding
Work and Pensions report into UK corporate DB fundingWork and Pensions report into UK corporate DB funding
Work and Pensions report into UK corporate DB fundingHenry Tapper
 
Monthly Market Risk Update: March 2024 [SlideShare]
Monthly Market Risk Update: March 2024 [SlideShare]Monthly Market Risk Update: March 2024 [SlideShare]
Monthly Market Risk Update: March 2024 [SlideShare]Commonwealth
 
The Power Laws of Bitcoin: How can an S-curve be a power law?
The Power Laws of Bitcoin: How can an S-curve be a power law?The Power Laws of Bitcoin: How can an S-curve be a power law?
The Power Laws of Bitcoin: How can an S-curve be a power law?Stephen Perrenod
 
ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.
ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.
ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.KumarJayaraman3
 
Stock Market Brief Deck for March 19 2024.pdf
Stock Market Brief Deck for March 19 2024.pdfStock Market Brief Deck for March 19 2024.pdf
Stock Market Brief Deck for March 19 2024.pdfMichael Silva
 
2024.03 Strategic Resources Presentation
2024.03 Strategic Resources Presentation2024.03 Strategic Resources Presentation
2024.03 Strategic Resources PresentationAdnet Communications
 
Hungarys economy made by Robert Miklos
Hungarys economy   made by Robert MiklosHungarys economy   made by Robert Miklos
Hungarys economy made by Robert Miklosbeduinpower135
 
What Key Factors Should Risk Officers Consider When Using Generative AI
What Key Factors Should Risk Officers Consider When Using Generative AIWhat Key Factors Should Risk Officers Consider When Using Generative AI
What Key Factors Should Risk Officers Consider When Using Generative AI360factors
 
Taipei, A Hidden Jewel in East Asia - PR Strategy for Tourism
Taipei, A Hidden Jewel in East Asia - PR Strategy for TourismTaipei, A Hidden Jewel in East Asia - PR Strategy for Tourism
Taipei, A Hidden Jewel in East Asia - PR Strategy for TourismBrian Lin
 
Mphasis - Schwab Newsletter PDF - Sample 8707
Mphasis - Schwab Newsletter PDF - Sample 8707Mphasis - Schwab Newsletter PDF - Sample 8707
Mphasis - Schwab Newsletter PDF - Sample 8707harshan90
 
LIC PRIVATISATION its a bane or boon.pptx
LIC PRIVATISATION its a bane or boon.pptxLIC PRIVATISATION its a bane or boon.pptx
LIC PRIVATISATION its a bane or boon.pptxsonamyadav7097
 

Kürzlich hochgeladen (20)

The unequal battle of inflation and the appropriate sustainable solution | Eu...
The unequal battle of inflation and the appropriate sustainable solution | Eu...The unequal battle of inflation and the appropriate sustainable solution | Eu...
The unequal battle of inflation and the appropriate sustainable solution | Eu...
 
Remembering my Totem _Unity is Strength_ growing in Bophuthatswana_Matthews B...
Remembering my Totem _Unity is Strength_ growing in Bophuthatswana_Matthews B...Remembering my Totem _Unity is Strength_ growing in Bophuthatswana_Matthews B...
Remembering my Totem _Unity is Strength_ growing in Bophuthatswana_Matthews B...
 
Solution manual for Intermediate Accounting, 11th Edition by David Spiceland...
Solution manual for  Intermediate Accounting, 11th Edition by David Spiceland...Solution manual for  Intermediate Accounting, 11th Edition by David Spiceland...
Solution manual for Intermediate Accounting, 11th Edition by David Spiceland...
 
Lundin Gold March 2024 Corporate Presentation - PDAC v1.pdf
Lundin Gold March 2024 Corporate Presentation - PDAC v1.pdfLundin Gold March 2024 Corporate Presentation - PDAC v1.pdf
Lundin Gold March 2024 Corporate Presentation - PDAC v1.pdf
 
India Economic Survey Complete for the year of 2022 to 2023
India Economic Survey Complete for the year of 2022 to 2023India Economic Survey Complete for the year of 2022 to 2023
India Economic Survey Complete for the year of 2022 to 2023
 
20240314 Calibre March 2024 Investor Presentation (FINAL).pdf
20240314 Calibre March 2024 Investor Presentation (FINAL).pdf20240314 Calibre March 2024 Investor Presentation (FINAL).pdf
20240314 Calibre March 2024 Investor Presentation (FINAL).pdf
 
Work and Pensions report into UK corporate DB funding
Work and Pensions report into UK corporate DB fundingWork and Pensions report into UK corporate DB funding
Work and Pensions report into UK corporate DB funding
 
Monthly Economic Monitoring of Ukraine No.230, March 2024
Monthly Economic Monitoring of Ukraine No.230, March 2024Monthly Economic Monitoring of Ukraine No.230, March 2024
Monthly Economic Monitoring of Ukraine No.230, March 2024
 
Monthly Market Risk Update: March 2024 [SlideShare]
Monthly Market Risk Update: March 2024 [SlideShare]Monthly Market Risk Update: March 2024 [SlideShare]
Monthly Market Risk Update: March 2024 [SlideShare]
 
Commercial Bank Economic Capsule - March 2024
Commercial Bank Economic Capsule - March 2024Commercial Bank Economic Capsule - March 2024
Commercial Bank Economic Capsule - March 2024
 
The Power Laws of Bitcoin: How can an S-curve be a power law?
The Power Laws of Bitcoin: How can an S-curve be a power law?The Power Laws of Bitcoin: How can an S-curve be a power law?
The Power Laws of Bitcoin: How can an S-curve be a power law?
 
ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.
ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.
ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.
 
Stock Market Brief Deck for March 19 2024.pdf
Stock Market Brief Deck for March 19 2024.pdfStock Market Brief Deck for March 19 2024.pdf
Stock Market Brief Deck for March 19 2024.pdf
 
2024.03 Strategic Resources Presentation
2024.03 Strategic Resources Presentation2024.03 Strategic Resources Presentation
2024.03 Strategic Resources Presentation
 
Hungarys economy made by Robert Miklos
Hungarys economy   made by Robert MiklosHungarys economy   made by Robert Miklos
Hungarys economy made by Robert Miklos
 
What Key Factors Should Risk Officers Consider When Using Generative AI
What Key Factors Should Risk Officers Consider When Using Generative AIWhat Key Factors Should Risk Officers Consider When Using Generative AI
What Key Factors Should Risk Officers Consider When Using Generative AI
 
New Monthly Enterprises Survey. Issue 21. (01.2024) Ukrainian Business in War...
New Monthly Enterprises Survey. Issue 21. (01.2024) Ukrainian Business in War...New Monthly Enterprises Survey. Issue 21. (01.2024) Ukrainian Business in War...
New Monthly Enterprises Survey. Issue 21. (01.2024) Ukrainian Business in War...
 
Taipei, A Hidden Jewel in East Asia - PR Strategy for Tourism
Taipei, A Hidden Jewel in East Asia - PR Strategy for TourismTaipei, A Hidden Jewel in East Asia - PR Strategy for Tourism
Taipei, A Hidden Jewel in East Asia - PR Strategy for Tourism
 
Mphasis - Schwab Newsletter PDF - Sample 8707
Mphasis - Schwab Newsletter PDF - Sample 8707Mphasis - Schwab Newsletter PDF - Sample 8707
Mphasis - Schwab Newsletter PDF - Sample 8707
 
LIC PRIVATISATION its a bane or boon.pptx
LIC PRIVATISATION its a bane or boon.pptxLIC PRIVATISATION its a bane or boon.pptx
LIC PRIVATISATION its a bane or boon.pptx
 

Competing against Low Cost Producing Countries

  • 1. LOW COST PRODUCING COUNTRIES BY: PAUL YOUNG, CPA, CGA
  • 2. PAUL YOUNG BIO  Contact: paul_young_cga@Hotmail.com  25+ years of experience  Academia  Corporate Reporting and Analysis  Internal Audit and Risk Management  Cost Control and Management  Re-engineering business process  IT Financial Performance and Risk Management Solutions
  • 3. CHARACTERISTICS OF LOW COST PRODUCING COUNTRIES  Many low cost producing countries  Government restrictions on imports  Labor laws that do not protect workers  Lapse Environmental rules  Water Treatment  Emissions  Land management
  • 4. TOP LOW COST PRODUCING COUNTRIES Southeast Asia  Bangladesh  Cambodia  India  Indonesia  Malaysia  Pakistan  Phillipines  Sri Lanka  Thailand  Vietnam Source: http://www.businessinsider.com/kpmg-countries-manufacturers-low-cost-china-2011-9#bangladesh-1
  • 5. NORTH AMERICA / MEXICAN  Mexico has been able to pull itself out of an economic and social slump by bringing regulation change through continued support from NAFTA. Mexico’s investment in their infrastructure garners great support for investment in manufacturing. For example, the 2014-2018 Infrastructure Reform promises to use 598 billion dollars to implement 743 infrastructure projects. 262 of those projects will be focused on energy improvements, and 233 projects are catered towards communications and transportation. Increased productivity, accessibility, and transport will build the maquila workforce and enable more skilled laborers to accrue necessary knowledge about industrial culture. As the Mexican infrastructure strengthens, maquila workers are able to contribute to their growing economy and make room for an up-and-coming middle class.  Mexico has an educated workforce with the ability to surpass traditional maquiladoras and work with advanced mechanical operations. Young professionals benefit from manufacturing jobs and hold positions such as factory workers, programmers, and operations management positions. Mexican workers are provided with opportunities to succeed in their careers, as heightened manufacturing production maintains the country’s growing exports. With a new social status, Mexican quality of life improves and more attention is given to work as the middle class contributes to the Mexican economy. But good news for the new Mexican middle class is also good news for the U.S. labor force. Source - http://offshoregroup.com/2016/09/01/mexican-manufacturing-catalyst-u-s-economic-growth/
  • 6. COST COMPETITIVE INDEX Source: - https://www2.deloitte.com/content/dam/Deloitte/global/Documents/Manufacturing/gx-global-mfg- competitiveness-index-2016.pdf
  • 7. LOW COST PRODUCING COUNTRIES /CHINA  The exodus of factories moving out of China in search of lower-cost options in southeast and central Asia is accelerating, as manufacturers face increased pressure to reduce unit costs.  Few industries have been spared amid the search for cheaper manufacturing alternatives, with rising Chinese labour rates cited as a major concern affecting industries as diverse as apparel and high- technology. Source: http://www.scmp.com/business/companies/article/1863709/manufacturers-step-search-low-cost- alternative-china
  • 8. TOP COUNTRIES – LOWEST LABOR RATES  1 – Madagascar $0.18 Hour  2 – Bangladesh $0.23/Hour  3 – Pakistan $0.32/Hour  4 – Ghana $0.32/Hour  5 – Vietnam $0.39/Hour  6 – India $0.48/Hour  7 – Kenya $0.50/Hour  8 – Senegal $0.52/Hour  9 – Sri Lanka $0.62/Hour  10 – Egypt $0.80/Hour Source: http://www.therichest.com/rich-list/poorest-list/countries-with-the-cheapest-labor/
  • 9. LABOR / MINIMUM WAGES  Many developed countries have established labor laws for minimum wages. Minimum wages for developed countries tend to be higher than those of low cost producing countries.  Vietnam monthly minimum wages is about $145 month which is far less than say Canada at $2,080/month Source: http://www.ecotripsos.com/highestminimumwage/
  • 10. SOCIAL SPENDING/GDP  Social spending  Healthcare  Education  Pensions  Infrastructure  Child tax benefits/Child Care  Defense  Environment
  • 11. SOCIAL SPENDING / GDP Source: https://www.oecd.org/els/soc/OECD2014-Social-Expenditure-Update-Nov2014-8pages.pdf
  • 12. WHAT CAN BE DONE Areas of focus  Trade/FIPA  Fair Trade Deals  Adopting BEPS  New transfer pricing Rules  Innovation  Investment in education  Expand opportunities  Advance manufacturing  Information technology  Expert Farming  Extraction/refining  Clean Technology

Hinweis der Redaktion

  1. 1.
  2. 1.
  3. 1.
  4. 1.