The Rising Wages in China and Its Ramifications

Foxconn has announced that it would offer its workforce a 30% pay raise. Foxconn is a Taiwanese contract manufacturer with a factory complex in China, exploiting its cheap labor and serving international companies including Intel, Nokia, Apple, Sony, Microsoft and Nintendo. How would this cost inflation affect people around the globe?

Of course these inflationary pressures would have different ramifications for the Western advanced economies, newly industrialized economies, and emerging ones.

Cycles seem to turn relentlessly.