From the BBC: Rolls-Royce set to cut 2,300 jobs
The job losses come as the firm seeks to ward off the impact of high raw material prices and a weak dollar.Rolls Royce has companies in China, India, Korea, Malaysia, and Singapore as well. Notice any difference in the areas where the cuts are taking place versus where they are not. Perhaps the cost of labor and all of those implications might have something to do with it. Just a guess.
The cuts will affect the company's operations in the UK, US, Germany and the Nordic countries, the firm said.
Speaking of a weak dollar, here's an article on the dollar's slide. It seems to hit at a few strategic points.
From Business Day (from October 2007): The dollar woes deepens
The recent weakness in the dollar has come as a result of the weak economic data emanating from the US. For instance, employment data for August reported a net decline in jobs for the first time in four years. As a result, the US Federal Reserve (Central Bank) cuts interest rate by half percentage points to 4.75 per cent. This weak economic data itself is a result of the uncertainty surrounding the US economy after the sub prime mortgage problems that led to the squeeze in credit around the globe.
One of the good that has come from the weak dollar is its impact on American export. There are signs that exports have risen as sales to European destination have grown significantly in the last quarter.
This uncertainty that volatility brings, if persist, may lead to significant reduction in international trade and investment, and may also slow the growth in the world economy, as reported last week.
Since the weakness in the dollar is expected to lead to increase in exports and help the recovery of the American economy, and also narrow the US trade deficit, it is no wonder that analysts are considering the trade-off between a strong dollar and a recession in the US. To an extent, there is clearly a trade-off because America currently needs a weak dollar to expand its exports, and help prevent the economy from sliding into recession.
4 comments:
What exports? We don't have much of an Industrial base anymore. Maybe, their talking about cheaper weapons? Everything else we need will increase because of the dollar including all the crap we import from China.
Caterpillar, Hollywood, Disney, Harleys, Music, Book culture, Kentucky Fried, McDonalds, Coca Cola, Specialty Construction, Wal Mart, Star Bucks, Microsoft, Weapons, Airplanes, lots of stuff.
Not anything like we used to produce. Much of what u mentioned isn't even physical products but software and music and videos.
Yes. I'm going to look into this more, its got my interest. What industries remain and why do they remain. Why is there any industry here at all considering labor costs are so much lower in China. Slave labor yee ha.
A lot of this stuff is about companies that are based in the USA but make lots of stuff in other countries like coca cola.
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