I am no economist, but practically seeing, the idea seems to be stupid. Here what u r implying is that to save one to two rupee appreciation effect, u double your cost by moving manufacturing or production to higher cost companies. Now where u will move. Other asian countries are witnessing the similar trend. Chinese Yuan appreciated 5%, Singaporian Peso 10% and so on. So u r left with countries such as Zimbabwe or South African nations whose cost is not appreciating. But what about when they decided to do so? Again shifting the production?? Well that is not solution. Moreover if u shift ur production to America, the production cost will be so higher that your profit margins will surely face the music because as of now your production cost is too low due to cheap labour in India.
RE:RE:Stupid idea
by swamy on Oct 03, 2007 07:23 PM Permalink
what that translates to is , send more people onsite and reduce the total workforce. He is a Wharton Professor, he knows what he is talking ok
RE:Stupid idea
by Maryjorse Gandmar on Oct 04, 2007 04:06 AM Permalink
Dei mara mandai, just because he is wharton we should believe whatever he said or what ? RBI can keep the rupee down indefinitely, that's the right thing to do for our IT company peoples. If you open office in Iselin and put Infy peopple onsite they will charge more that too in dollars because they will go to Iselin corner porn store and rent porn dvd who will pay for that, your father ?
RE:Stupid idea
by Cool on Oct 03, 2007 07:25 PM Permalink
Did u say Zimbabwe cost not appreciating? Do u have any idea what the Zimbabwe Dollar is to US$? In the past few mths it had devalued by more than 1000%.
