The 4:2:1 problem means that, for every four …show more content…
When the industries in Europe and U.S. grew drastically in the 1900’s, they used manpower from around the world. The borders were open and language was not a huge barrier. Also, the local population did not have enough manpower to support the growth. In China, all of these factors are different. The economy is closed to foreigners seeking employment. The political climate is not open for an external workforce. All this growth has to be supported by the youth in that country. The shortage of the right type of people for the jobs is slowing the economy and sending ripple effects through the global supply chain. Most electronic, plastic, and clothing manufacturing has been outsourced to China. Any slowdown in Chinese manufacturing will upset the global supply and demand situation. The recent economic predictions are pointing to a slowdown of the economy. The GDP index has fallen to 7.5 percent (Ansuya). This is an indication that that the economy is not growing and may upset the world markets and impact the stock values of most major