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true, different businesses vary but even those that use commodities as there basic ingrediant dont have that commodity counting as much as we all think. most products they looked at had labor and cost of production as number 1 accounting for most of the resale price.
nooooooooooo they are very true.. the only thing holding prices down on most goods is the fact cheaper overseas labor is helping absorb the other increasing costs .
nooooooooooo they are very true.. the only thing holding prices down on most goods is the fact cheaper overseas labor is helping absorb the other increasing costs .
Perhaps in your world, but not in reality. Firstly, outsourcing production is not the only way a company can reduce production costs. A company can also automate the production and produce the goods in the USA. In most cases companies will outsource the production because the capital requirements to automate their production are large. In industries that can't be easily outsourced this is exactly what you see, that is highly automated production. For example, look at food production.
Secondly, when a company saves on production costs it doesn't necessary reduce the cost of its goods, instead it may use the extra capital to investment in other projects, increase R&D spending and so on.
As I said, you are speaking in useless generalities, the real world is far more complicated.
C'mon....your suggestion here is not even reality based. Firstly the recent increase in clothing prices is due to the increase in cotton prices and the increase has been rather modest, the retail costs would only need to adjust 3~4% to maintain the same margins and that is assuming they can raise prices. Secondly, the claim that outsourcing has tamed inflation in apparel makes little sense. Not only has a lot of apparel production been outsourced for many decades, but the US still has a fairly large apparel manufacturing industry. Come visit LA if you'd like to see it. The costs of domestically produced apparel have not increased in costs any more than foreign produced apparel.
mj, just cause some corporate suit types have convinced you that in order for you to maintain your job, some other working slobs here must loss theirs to "outsourcing," does not necessarily mean it is so.
They do the outsourcing for a couple of reasons . . . first there are greater profits. That does not mean that things would not be profitable if done, here -- it is just More Profitable to exploit some third worlders. Second, it is easy to cheat on the taxes when you go to transnational transactions.
Neither of those have anything to do with maintaining your job, or "managing to do business in a global competitive business enviro . . . (bs, bs, bs, etc.). Just greed and cheating on taxes. That is what is keeping things the direction they going.
Yeah, the Chinese aren't able to make quality products unless they are under the "watchful eye" of a parent company (US based right?). I wonder if they can even tie their shoes without an American helping?
Maybe maybe not...but they sure are good at feeding their own people plastic milk.
NO,NO and NO !
I study economics, I must say it : Trade Agreements are GOOD !
You can't imagine the good effects of NAFTA for example
Corporate profits are up, and unemployment is way up, so the question that begs to be answered is good for whom?
Not everybody, that is for sure, but it certainly is good for the rich.
The working people who are struggling to survive? Who cares? They are not the ones in power, at least not now…
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