Offshore Outsourcing Mostly About Lower Salaries? No Kidding!

Why not outsource the position of CEO?

Indeed. And Halliburton just did outsource their entire HQ to Dubai.

H'mmm. When do their U.S. taxpayer-funded contracts come up for renewal? Time to "In Source"

It's not only lower wages. When you look at the litigation and other regulatory costs,,,it's no wonder companies go overseas.

If you were a CEO,,,,and the CFO came in your office and said,,,,"How about this? We go overseas,,,,not only lower wages,,,,but reduced legal costs (no lawsuits for affirmative action, sexual harrassment, age discrimination, etc),,,,no unions,,,no social security costs,,,reduced health care costs,,,, etc. " He makes a compelling case.

It's not only lower wages. When you look at the litigation and other regulatory costs,,,it's no wonder companies go overseas.

Actually, the regulations and litigation can only be partially evaded...as the manufacturers of toxic pet food will soon discover. I don't think the US companies are going to allow themselves to be the sole saps taking the fall for what the Red Chinese...may have done quite deliberately as a test of the U.S. food-safety protections.

But taxes are clearly in favor of shutting down in the U.S. and rushing pell mell to China, which SUBSIDIZES its exports. Then importing back to the U.S., which unlike China, has no tariff protection. The Chinese "partnered" operation pays no US corporate or personal income taxes on its Chinese production. Nor capital gains so long as the profits are not repatriated back to the U.S. but plowed back "re-invested" into Chinese expansion.

As for no unions...that isn't quite true. They simply require that the unions MUST be communist party unions (so much for true "freedom" eh) and the head of the union shop...must be the boss of the plant!?!!

Then importing back to the U.S., which unlike China, has no tariff protection.

We have no tariffs on imports from China? Source?

The Chinese "partnered" operation pays no US corporate or personal income taxes on its Chinese production.

An American company pays taxes on all income earned anywhere in the world, even China.

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