Global trade transforms from labor cost arbitrage to high-skill knowledge work.

Laura Hermes

2019-01-29 10:33:00 Tue ET

Global trade transforms from labor cost arbitrage to high-skill knowledge work. In fact, multinational manufacturers have been trying to create global supply chains that source goods wherever costs and wages are lowest in exchange for product sales wherever aggregate consumer demand is greatest. This macro trend drives global economic growth, helps alleviate poverty outside the OECD trade bloc, and contributes to the recent rise of China. This trend also helps fuel a political backlash in America.

A recent McKinsey study finds that the share of cross-border tradable goods has fallen sharply from 28% to 22% in the past decade. This reversal of fortune partly reflects the political backlash against trade in America. The same trend also shows a key increase in consumer demand in China and several other Asian economies. These countries now buy more of their own goods and also experience substantive improvements in domestic supply chains. Tradable goods decrease as a share of global economic output, whereas, services soar to account for almost a quarter of productivity gains. International trade transforms from labor-cost arbitrage to high-skill knowledge work in R&D innovation and intellectual property protection. This transformation takes place in specialty industries such as information technology, pharma biotech, e-commerce, and social media.

 


If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.

Blog+More

JPMorgan Chase CEO Jamie Dimon views wealth inequality as a major economic problem in America.

Monica McNeil

2019-12-19 14:43:00 Thursday ET

JPMorgan Chase CEO Jamie Dimon views wealth inequality as a major economic problem in America.

JPMorgan Chase CEO Jamie Dimon views wealth inequality as a major economic problem in America. Dimon now warns that the rich Americans have been getting wea

+See More

Neoliberal public choice continues to spin national taxation and several other forms of government intervention.

Peter Prince

2019-01-07 18:42:00 Monday ET

Neoliberal public choice continues to spin national taxation and several other forms of government intervention.

Neoliberal public choice continues to spin national taxation and several other forms of government intervention. The key post-crisis consensus focuses on go

+See More

Apple and Samsung are the archrivals for the title of the world's top smart phone maker.

Olivia London

2018-06-25 12:43:00 Monday ET

Apple and Samsung are the archrivals for the title of the world's top smart phone maker.

Apple and Samsung are the archrivals for the title of the world's top smart phone maker. The recent patent lawsuit settlement between Apple and Samsung

+See More

Federal Reserve confirms that all of the 34 major banks pass their annual CCAR macro stress tests.

Apple Boston

2017-05-31 06:36:00 Wednesday ET

Federal Reserve confirms that all of the 34 major banks pass their annual CCAR macro stress tests.

The Federal Reserve rubber-stamps the positive conclusion that all of the 34 major banks pass their annual CCAR macro stress tests for the first time since

+See More

American state attorneys general begin bipartisan antitrust investigations into Apple, Amazon, Facebook, and Google.

Charlene Vos

2019-10-21 10:35:00 Monday ET

American state attorneys general begin bipartisan antitrust investigations into Apple, Amazon, Facebook, and Google.

American state attorneys general begin bipartisan antitrust investigations into the market power and corporate behavior of central tech titans such as Apple

+See More

A brief biography of Andy Yeh

Andy Yeh Alpha

2020-11-22 11:30:00 Sunday ET

A brief biography of Andy Yeh

A brief biography of Andy Yeh Andy Yeh is responsible for ensuring maximum sustainable member growth within the Andy Yeh Alpha (AYA) fintech network pla

+See More