The ability to aggregate demand across the globe allows niche companies to hone a particular service or product and address precisely that market Those that are caught out are those that today have inefficient organisations, those in informal relationships that cause them to be the supplier of choice. You can survive for a while like that. But in the end the price and quality considerations of the consumer will overwhelm the friendly relationships. JG China will be the biggest example. China s accession to the WTO will expose Chinese state-owned enterprises to foreign competition.
Some entities deal on the international market and are able to compete with their cost structure.
Many other entities in China, as in Russia, or in the countries supplying Russia, had employment as a primary goal and production as a secondary goal. In Hungary the largest TV manufacturer selling to Russia, when the pricing structure and artificial support structure broke down, saw employment fall to 4,000 from 40,000. An enormous social strain occurred, and it will occur for millions of people in China as international competition begins to reach into the far corners of Chinese production. It is going to do both. The effects, I think, will vary depending upon the local circumstances.