inflation at home plus appreciation abroad Thread poster: Doroto
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Doroto
Local time: 15:43
English to Chinese
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For the past more than half year, it is bad time for people in China in any walk engaged in international transactions, amonst, language professionals offering service for international clients.
The reason is that Chinese currency RMB (Yuan) is appreciating against US dollars with an increase of more than 6.2 % as of the end of July from the outset of China's currency reform two years ago, and the trend is still under way with many foreign investors betting on continuous rise of RMB... See more For the past more than half year, it is bad time for people in China in any walk engaged in international transactions, amonst, language professionals offering service for international clients.
The reason is that Chinese currency RMB (Yuan) is appreciating against US dollars with an increase of more than 6.2 % as of the end of July from the outset of China's currency reform two years ago, and the trend is still under way with many foreign investors betting on continuous rise of RMB in the near future, and on the other hand, at home, the market has seen a abrupt price hike, in other words, inflation of the economy, given rise to by a shortage of pork in the market. It was officially released that in a single August, the market had an inflation rate of 6.5%, and again the trend is continuing in defiance of the central governmental curbing measures.
So I have personally experienced a dillema where I pondered whether it would be wise to raise sucn concern to international clients. For an English to Chinese translation of legal documents, I used to charge RMB 500-800 per 1000 words which seems comfortable and now it does not look appealing with the appreciation and inflation working together. However, an increase in price may injure some established good relationships and it is a really catch-22 situation.
What would you do in such a case if you were me?
Doroto www.doroto.com ▲ Collapse
| | | | | The currency does matter..... | Nov 3, 2007 |
Hi Doroto,
The currency does matter for our career because we have to deal with the client from around the world.
I'm not sure if I were you , for me, I quote in USD currency. Good for me that right now THB is very strong, and the tencency for next years for THB is seem to be weaker (That means I will receive more).
Anyway, I think if you want to change something with the current client it will have some effect on your relationship in some way. So, try new ... See more Hi Doroto,
The currency does matter for our career because we have to deal with the client from around the world.
I'm not sure if I were you , for me, I quote in USD currency. Good for me that right now THB is very strong, and the tencency for next years for THB is seem to be weaker (That means I will receive more).
Anyway, I think if you want to change something with the current client it will have some effect on your relationship in some way. So, try new things with new client only.
I'm not sure that my opinion will useful or not but good luck
Kerati ▲ Collapse
| | | | Doroto
Local time: 15:43
English to Chinese
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TOPIC STARTER | thanks, Karati, it does matter | Nov 3, 2007 |
The effect is kind of significant. Appreciation together with inflation will mean a decrease of 13% of the usual price.
Price in China has been going down due to fierce competition among translation companies and so does the quality thereof.
However strong China's might may be, it has to make concession to US who has been alleging China has manipulate the currency. We small patotoes have no way to budge the situation.
Life has to continue.
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Doroto wrote:
However strong China's might may be, it has to make concession to US who has been alleging China has manipulate the currency. We small patotoes have no way to budge the situation.
... to the free market and capitalism. Isn't China on the same boat now? So China as well has to play the same game.
Kind regards
Mario Cerutti
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Doroto
Local time: 15:43
English to Chinese
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TOPIC STARTER | no argument on that | Nov 3, 2007 |
Mario Cerutti wrote:
... to the free market and capitalism. Isn't China on the same boat now? So China as well has to play the same game.
Kind regards
Mario Cerutti
I cannot argue about that with you, and not is it the right place here for that.
So far as I know, Japan had experienced a bitter history in that regard when Japan bowed before US' might to allow its currency to rise.
| | | | | Free economy-driver rates | Nov 3, 2007 |
Doroto wrote:
I cannot argue about that with you, and not is it the right place here for that.
So far as I know, Japan had experienced a bitter history in that regard when Japan bowed before US' might to allow its currency to rise.
It's you who started this kind of "political" issue, and besides I can't see what Japan has to do with this posting.
However, what I wanted to say is that the Chinese might not be used yet to how things go in the free economy market. But, since China is in this very boat now - whether you like it or not - you will have to get used to less and less regulated economy and play according to the market rules. Currency fluctuations and inflation are just two factors of the free economy. What it is likely to happen in the Chinese translation industry, as well as in many other market sectors, is that the stronger players will have to increase their rates to maintain the quality that is necessary to compete internationally, others will follow suit and others will cease to exist.
In other words, things are going to be more balanced in a not-so-distant future.
Kind regards
Mario Cerutti
| | | | Ralf Lemster 
Germany
Local time: 09:43
English to German
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| ProZ.com scope | Nov 3, 2007 |
Hi all,
Thank you for remembering, and complying with, the ProZ.com scope.
Best regards,
Ralf
| | | | Jan Willem van Dormolen (X)
Netherlands
Local time: 09:43
English to Dutch
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| It's the same all over the world | Nov 3, 2007 |
Not only the East-Asian currencies are rising in rapport to the USD, this goes for just about all western currencies too. I myself have noticed a fall of over 10% of the USD in respect to the Euro, in less than a year.
I have two American clients who pay me in dollars. After a lot of hesitation, I have politely asked them to reconsider the rates they pay me, in the light of the USD inflation. They both complied without any objections whatsoever.
If your client appreciates you, he wil... See more Not only the East-Asian currencies are rising in rapport to the USD, this goes for just about all western currencies too. I myself have noticed a fall of over 10% of the USD in respect to the Euro, in less than a year.
I have two American clients who pay me in dollars. After a lot of hesitation, I have politely asked them to reconsider the rates they pay me, in the light of the USD inflation. They both complied without any objections whatsoever.
If your client appreciates you, he will appreciate your concerns. ▲ Collapse
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Doroto
Local time: 15:43
English to Chinese
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TOPIC STARTER | Moderator, please delete the relevant posts above tainted with "political" sense | Nov 3, 2007 |
As in the title.
I never like such political argument involving Japan, as happening all the time at home. I went to visit Japan once last year and I know that is county deserving respect from the international community for a lot of reasons.
Anyway, right, Cerruti, the stronger will survive.
[Edited at 2007-11-03 12:36]
| | | | Ralf Lemster
Germany
Local time: 09:43
English to German
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| Not necessary - you can edit | Nov 3, 2007 |
Hi Doroto,
Some postings were a bit 'borderline', but still within the rules IMO. What you can do is to edit your postings accordingly, in which case I would suggest that Mario did the same.
Best regards,
Ralf
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