re: dichotomy of a revalued renminbi
Comparing raw wage rates does not provide a true picture. Productivity has to be taken into account. It can be that even though a workers wages may be only 10% of a comparable worker in another country, unless a comparable level of technology is being used, his output may also be only a fraction giving him less advantage than apparent at first. The real reason developing countries are catching up is that the rate that they are adopting the technology used in the developed countries is increasing. Low wages do give an added advantage, but it is not the primary one.
