Despite the low labor cost in China, there may be another way to attract foreign investment in China–Low Executive Pay. Read more from News.com:
…Excessive executive pay has been a hot-button issue in American politics for years, but worldwide factors could one day make it a liability on the balance sheet.
As companies in countries like China and India move away from performing behind-the-scenes functions, they’re selling products and services under their own brand names directly against U.S. and European counterparts…
How or even whether the differences in executive salary will impact the market remains unclear: multinational companies are hiring their own executives in these regions, too, after all. Nonetheless, the numbers are tough to ignore: engineers aren’t the only “talent” that costs less in developing markets. Executives cost a lot less, too.
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Different opinion from the Economist: China’s People Problem (subscribers only)
