Tuesday, December 26, 2006

Insuficient Pleople V6 part 2

A couple of days ago, Fortune published an article that was pretty telling: how big tech companies need to grow.

The article argued that these businesses needed to find ways to produce more products , cheaper than they are doing it now, to sell them in less developed countries. But the first question that came to mind was: aren't they (people in less developed countries) already producing those goods?

So, the article left two choices: find a cheaper place to produce those goods, but then how do they buy the goods? The target customer is the white collar worker/business that has certain purchasing power and disposable income (I do not see, say, people from the favelas in Rio worrying too much about getting the latest Cisco router, they have bigger concerns)

So to sell them goods, the article argues to take the jobs away from them.

This point of view assumes that those countries just live from high-tech. Obviously, this is not true, there are an assortment of other industries in a country like Mexico or Chile.

But what would happen in India, on of the emerging super-powers of the future? Where high-tech is one of the major economic forces?

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