How Companies Fight US Recession: Dell buys $70 billion of computer parts from China
Much of the world is in fear of not only a US recession, but also a global recession. Like many companies, Dell is looking down the road and plans on spending $70 billion on computer parts from China between 2007-2009. That’s a lot of cash, but this could also save the company in a recession when people do not have much money and want much cheaper computers.
Cisco Systems has said that it will double it’s spend on computer components in China, so what does this mean for the Public? If or when the recession hits, Google will want money from online advertising and companies will want to sell products.
Google and other companies could give free broadband so people go online and visit the ads, Dell and Cisco Systems could make cheaper products thanks to buying in China so that they can sell products when money is tight. It does look like a U.S. and maybe Global recession is coming, one where China will grow massively and brands that survive will already be putting plans in place.