Reebok’s Failed Union, David Dollar’s Take on China, and DBIC for Dummies

Tuesday, September 4, 2007 10:16
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Studying Reebok’s Union Election
Prior to its sale to Adidas, Reebok was one of the leading sports apparel firms. Of course, it feel on hard time and thus was sold to Adidas, but before its integration it did something I have never heard of. It proactively engaged the union, it pushed for elections, and it did it in China. This study is really interesting, and I would suggest anyone who is currently being unionize (or anyone considering it) read this report. Besides being interesting, this report looks at what has happened in the factory in the 5 years since the elections and how the conditions on the ground have worsened since Reebok pushed for the elections. It is a classic case of failing to understand the dynamics of China, and how some ideas no matter how good on paper they may appear are just really bad ideas outside of the vacuum. Download report here

The Chinese Economy: Can We Keep the Heat Alive?, II
Part 2 of the Aspen Institute Idea Festival, David Dollar follows Minxin Pei to present why there is hope in China. For many of us in China, it is easy to believe that there is not end to this ride, and that the only consequences of development are the openings of 100 story buildings and Gucci stores. The previous clip by Minxin, showed that there are real consequences and that through this period of development the Chinese government has a number of issues to deal with.

David’s take… the issues are being dealt with, and the worst cases are too remote to consider. Like Minxin’s presentation, I highly suggest watching David’s. He is the head of the World Bank for China, his argument/ presentation is built on solid knowledge of the facts, and he is articulate (a rarity in the world of economics). Not saying I agree with everything he says, but between David and Minxin there is truth.

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Doing Business in China For Dummies has been Published!!!
For those looking to learn all about doing business in China, there is now a Dummy Guide out. To be honest, I have not read it, but my good friend Jay Boyle of Expat CFO was a contributor and he has 10+ years in China (the last 5 performing due diligence on Chinese companies).

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