I’m trying to study for my Economics course and I need some help to understand this question.
Watch the following video and then record a brief essay that includes the talking points below.
At one point, the speaker, Olivier Scalabre, observes
“…we’ve tried to relocate our factories offshore in order to reduce cost and take advantage of cheap labor. Not only did this not inspire productivity, but it only saved money for a short period of time, because cheap labor didn’t stay cheap for long…” (time stamp 2:19)
• Describe the labor market processes that could explain this phenomenon. What happens when demand for cheap labor increases? What happens to workers who are supplying the labor as the market evolves? What happens to wage rates?
• Toward the end of the presentation the speaker describes a new, more productive and flexible manufacturing model, using “technological innovation” that “will create a huge macroeconomic shift.” (time stamp 8:50) Summarize this shift. If a transformation like were to occur, who would benefit? Who would be harmed? (Consider both U.S. and international businesses when considering these questions.) If you were running a large manufacturing facility, how would you detect a change such as this? How would you adapt? Give an example of an industry that you believe could be transformed by the use of cutting-edge technology. What would happen in the market over time as technological innovations were adopted?
Your powerpoint / paper should be approximately 3-5 minutes long and meet professional standards in terms of content. Your submission needs to be respectful and supportive in tone.