Two quick updates on earlier posts. The first is on the impact Indian labor strife on manufacturing. I posted about that a few weeks ago. Today’s Wall Street Journal has an article that discusses how labor unrest has impacted a number of firms (Deadly Labor Wars Hinder India’s Rise, Nov 20). It makes a number of points, including that many factory workers haven’t seen much benefit from the rapid growth in the Indian economy over the last decade or so. It also notes that India’s labor laws have been lagging the development of the economy.
“We can’t be a capitalist country that has socialist labor laws,” says Jayant Davar, president of the Automotive Component Manufacturers Association of India.
The other update relates to rationing products. NPR had a story this morning on Call of Duty: Modern Warfare 2, a video game that has set a new record for sales in its first week (‘Call of Duty: Modern Warfare 2’ Breaks Record, November 20). One the points mentioned in the article is that the game’s publisher ActiVision intimated to retailers that it just might not be able to make enough copies of the game and that retailers should therefore get their orders in early. That then led to a big push to land customer pre-orders from from Amazon and Wal-Mart. This drives home what I have said before (here and here) that allocation schemes are an underappreciated part of the market mix.