GLOBAL ECONOMY:

yes if the benchmark is the ratio price/quality of life

 

The above reports from MIT (Massachusetts Institute of Technology) describes evidence on the impact of sustained exposure to air pollution on life expectancy from China’s Huai River policy.

 

http://www.pnas.org/content/early/2013/07/03/1300018110

http://web.mit.edu/airquality/www/sum_96.html

http://web.mit.edu/airquality/www/

That means Chinese people work in a very polluted and insane environment because Government spend not enough money for protecting the health of people.

This is one of the most important economic benchmark that allows Chinese manufactures to be much cheaper than foreign products such as European and American ones.

Further,  quality in general of most Asian manufactures is much lower than European and America competitive products.

Now, if price is the only benchmark for measuring the effectiveness of products, than Asian ones have no competitors. But, if we compare quality of EU and USA products with those of Asian manufacturers,  than we can see that in most cases there can be absolutely no competition from Asian products.

Nevertheless. Asians continue to be on the market because just few consumers are used to analyze the ratio price/quality.

Such consumers’ behavior is destructive for many western companies, which have to spend for protecting environment, clients’ quality requirements, social welfare, employees’ requirements, investors expectations and overall corporate ethical behavior.

So, for the aforementioned elements, western companies cannot compete with Asian companies.

Such a lack of competitiveness is neither fair, nor legal. We absolutely need to repair such unbalance, otherwise bad companies will drive good companies away from the market.

And once that has happened we will never find again quality as a product mix.

Chinese and more in general Asian manufacturers cannot pretend to be on the market only for monetary profit. Human life has so many others profits to be reached such as environment, human rights, and health protection, non-speculative investors, employees and clients expectations, in two words: corporate ethics.

Corporate ethics is a must nowadays because current economy can no more avoid a correct corporate behavior, considering that people is no more starving as in the last century’s beginning. Nowaday people want to live a better life, with no war and deeper sense of justice.

Asian manufacturers must respect Ethics if they want to be respected. Customers have to pretend more quality of life in corporate Ethics, otherwise we will be pushed dawn to a mortifying economy of money.

 

10.07.2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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