China, China, China (Marcia, Marcia, Marcia)

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Global Trade

Jan Brady, the middle sister of that popular 1960’s early 1970’s TV show, The Brady Bunch once said, “Well, all day long at school I hear how great Marcia is at this or how wonderful Marcia did that! Marcia, Marcia, Marcia!” And I can’t help but think that all we had heard from everybody over the past several years was China, China, China! Companies gave so much effort to “China Sourcing Inititiaves” that they practically ignored the rest of the world.

The default to China may not be justified. According to this week’s Economist, eastern Europe is actually easier to do business in than East Asia.  The  survey, conducted by the World Bank and the International Finance Corporation, looks at business regulation across 181 countries. The specific elements in the survey include how easy it is to set up a business, how easy it is to hire and fire workers, the level of corporate taxes and how commercial disputes are settled. The report has greater ramifications for companies thinking of setting up operations in eastern Europe as opposed to sourcing from eastern Europe. And yet on those key factors, eastern Europe scored surprisingly higher than East Asia.

So where did East Asia score higher than eastern Europe? Not surprisingly they did better on moving goods across borders the article points out. Government fees averaged $859 from Asia vs. $1428 in eastern Europe. Taxes are also lower. What is the takeaway? It’s not going to hurt your sourcing efforts as well as your sales efforts to pay a little attention to other parts of the world. We’ll be covering sourcing from eastern Europe in the coming weeks.

–Lisa Reisman

Comments (2)

  1. Mike Harmon says:

    You know, I have to tell you, I really enjoy this blog and the insight from everyone who participates. I find it to be refreshing and very informative. I wish there were more blogs like it. Anyway, I felt it was about time I posted, I’ve spent most of my time here just lurking and reading, but today for some reason I just felt compelled to say this.

  2. admin says:

    Thanks Mike for your kind words. You put a smile on our faces this Monday. LAR

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