Asia may hold the key to the world economy right now, at least from a manufacturing standpoint. They say that Asia has been the most stable global region that even if there is crisis, it doesn’t fall nor rise which I think is somehow similar to playing safe. Some companies are already choosing Asia for manufacturing their products for its low labor costs but still it doesn’t beat America and Europe as these countries are the top ones who holds a strong manufacturing industry. But Asia can be the best alternative companies could choose if ever U.S. and Europe fails and their economy fall down. Entrepreneurs are weighing their opportunities in these countries on where to invest safely and with less cost. Can Asia be another best option next to the big countries?
According to the article Everyday Finance, “Manufacturing, however, has since shifted to the developing nations of the world. This has occurred because manufacturers can pay workers substantially lower wages to produce goods in developing countries than they can in places such as the United States, England, and Germany.” Labor wages in Asia like in China is cheaper than the other developed countries and this is the reason why it is chosen to be the place where manufacturing plants are built.
As mentioned in Business Credit, “Asia has the ability to stimulate the global economies fiscally. They can drive the world out of a downturn. They can drive the growth and provide stimulus for the world.” Asia can survive well during recessions and even search for opportunities during these hard times. They can still make money out of economic problems that are occurring even if it doesn’t give back a lot.
Another mentioned in Business Credit, according to Chris Khuel, PhD, “The customers are still in Europe and United States, and without them (buying at normal levels) it’s going to be hard on export-heavy countries like Korea and China and Japan. I don’t think you’re going to see a major decline, but I don’t know if there’s enough strength to pull other countries along with them.” Sometimes you are on top, sometimes you are not. The Manufacturing Industry may seem big and profitable but for some countries, they only prosper in a few years then fall maybe due to the economic problems of the country, high currency values or slowing growth rates.
Therefore, Asia can still be a home for a better and stronger Manufacturing Industry especially that now its economy is rising. Soon more and more companies will move back to Asia and could be in line with the top countries. Entrepreneurs have a lot of opportunities in engaging in manufacturing as it provides work to people and in order to industrialize, a developing country must first establish manufacturing industries to provide the products it needs to build an infrastructure.