Discussion»Questions»Politics» If YOU could put your factory in a country where wages are $2/hr, or a country where wages are $20/hr, which one would you choose??
If YOU could put your factory in a country where wages are $2/hr, or a country where wages are $20/hr, which one would you choose??
Hello:
Would your LOVE of America have anything to do with your decision?? Would your support for Trump have anything to do with your decision?? Could you compete with factories that pay $2/hr?
If it were my factory, I would want the $2 one, of course.
But If I was prez, and I wanted to keep Americans in work, it would be in my and the country's best interests to keep it here. So for that there has to be some incentive for bosses to keep their companies to stay, right? Tax incentives.
You see, that one depends on a lot of other stuff too. We see more and more jobs coming back from China as wages have raised over the time, hard time to live up to the quality standards which means a lot of wasted materials, transportation, negotiating with the customs each time raw material is imported for the production. At the end of the day there was not much won and on top of that, and less costumer satisfaction. You get what you pay for.
I would put my factory in the USA. My answer would have been the same during the Obama administration. The reason is my husband and I buy USA made products whenever possible. The only products in our house that aren't made in the USA are our electronics and just a few other items so if I had a factory that made things not only would I keep it in the USA I would also manufacture in my home state.
American made products are usually but not always more expensive but there are people like my family who specifically buy products made in their own country.
Any idiot that makes that kind of decision solely on the wages paid is doomed to failure. There's a WHOLE lot more to selecting a manufacturing location than just employee wages.
That depends. Too many corps IMO have gone to the $2/Hr on the service side (like service desk) and discovered it was a disaster. Communication issues, gaps in understanding business functions, lots of QA issues. Multi-billion dollar corps relying on complex systems, supported by people in 3rd world countries that can barely keep their own infrastructure functioning.
So, now we insist that these companies locate some of the staff in the US, at least for daytime business hours. Move in the right direction, still a long way to go. The flip side is would you want to send $$ to India via service, or send $$ there because they have a billion starving people?
I'm not going to get into Prez talk because it just goes sideways, but I have seen too many politicians over the years, mostly at local levels, turn a blind eye to the companies in their districts, then act all aghast when they beat their feet somewhere else.
As a strictly business opinion, the regulations, and tax rates, shipping costs, import/export costs would have to be able to overcome the $18/hr difference. Assuming that both locations could produce the same product quality.