
James A. Dorn
For decades, thousands of small Chinese manufacturers produced average-quality goods for local consumption. And apart from a few national brands and “newly essential” consumer goods, such as TV’s, refrigerators and bicycles, little demand existed for a national consumer goods distribution network. The logic went: if you can get what you need locally, a national distribution system wasn’t necessary.
Additionally, as recently as 1985, there were virtually no urban or rural households defined as middle class. Even in 1995, households defined as poor represented more than 92 percent of urban households. So even if a sound distribution network existed, there was little demand to ship products across country. This has changed.
There is reason for grave concern about the direction of U.S. trade policy. The bipartisan, pro-trade consensus, which served U.S. economic and diplomatic interests so well for so long, collapsed during the final two years of the Bush administration.
Congressional skeptics, who helped derail the U.S. trade agenda, have increased their ranks in the new Congress. And, already grim economic conditions appear to be growing worse, making the political climate even less hospitable to arguments favoring trade and globalization.
Having just returned from a speaking tour in China and Singapore, I found the audiences there extremely interested in the perspectives of the Obama administration and the 111th Congress. And why not? Economic and trade policy decisions driven by this Congress and President will have a tremendous impact on Asia, as well as every other continent.
When business is good, positive feelings can be felt inside just about any organization. And why not? Sales are coming in and money is available to incentivize all performers, not just those at the top. However, during recessionary periods like this one, the tone inside most companies—perhaps even yours—is probably quite different.
As sales slow, people become nervous and edgy. And although everyone may boost efforts, pressure mounts. The result: finger pointing begins and silos between departments or teams rise. And worst of all, a company culture built upon mutual trust begins to fade.
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