“Dell to invest $100 billion in China by 2020”
Read more: http://www.vancouversun.com/business/asia-pacific/Dell+invest+billion+China+2020/3543381/story.html#ixzz108katvoH
Read more: http://www.vancouversun.com/business/asia-pacific/Dell+invest+billion+China+2020/3543381/story.html#ixzz108katvoH
Summary
As the title says, the computer company Dell plans to invest $100 billion in China by 2020. They will be opening their second centre in Chengdu, Sichuan. The centre will include manufacturing, sales and services to help the rapidly growing market in the area. It expects to be open in 2011 and will have around 3000 employees. One reason as to why the company may have decided to invest in China is because investing in the coastal regions is becoming too expensive for the company.
Connections
This article really made me think about the idea of opportunity costs. Every time you decide to invest in something (opportunity), there is a loss. The loss is the potential money you could have made if you hadn’t made that decision. Every action you take has a consequence; it doesn’t matter if it’s something as large as investing 100 billion dollars into a country, or if it’s as small as buying something from a vending machine. Usually, the loss is something as simple as time. For example, in this article, Dell is not putting 100 billion dollars into China overnight. Rather, it is a long-term plan spanning 10 years, during which a lot of time and effort will be spent. Will the investment be worth it?
Reflections
Reflections
I now understand why making financial decisions is not easy. Even the smallest steps of a plan can cause huge losses. As well, every step is crucial. You can’t ever really avoid opportunity costs, you can only hope that the decision you make will reward you with something bigger than what you could have lost. Even when you do nothing, you just lost time, time which could have been spent more productively somewhere else. In conclusion, I think I now have a much better grasp about the concept of opportunity costs, and how I should always be more thoughtful about the decisions I make.
Yes, I think it was worth it when Dell invested $100 million in China. Dell could be having trouble being productive, on the coastal regions. It is also a good reason for them to invest in China, where investment is cheaper than coastal regions. I learned a lot of things about opportunity costs from this article. I thought you fully explained what opportunity cost is and how it affects people on typical days such as when you mentioned if a person should save money or buy a drink from the vending machine. Good insight on the article.
ReplyDeleteThe cassettes have had a long life line; it’s about time that they would be put to rest. Cassettes have been replaced by CDs, MP3 players, iPods, and constant new arrivals. So why had the cassettes been able to last so long? There must have been some people, or at least someone, still buying them, but who would still buy them if many other substitutes on the market are more convenient? All thoughts aside, I agree with you that technological changes have made the cassettes obsolete; cassettes have great sound quality but the CD makes the cassette seem dull in comparison. This is an awesome post, great work Jimmy.
ReplyDelete-Michael H