That's right -- that's real free trade as we have production in their countries and we sell in their countries.
I've asked and asked and asked again on thread after thread.
Maybe you can answer.
How come foreigners can outsource to us and do well selling here at the same time that many American corporations say that they must move production off shore and import the goods to remain competitive? IMO that's not real free trade that's "free trade."
I am not trying to be confrontational. I really want to know.
The American manufacturers don't make many products in that arena, that others want, is my take on things. Fuel economy is a big issue, as is design, build quality, and reliability. Cadillac is making big strides, and Ford is trying with the new 500. What do we have that would appeal in Europe or South America? Think about that, and I think you'll see the issue.
"How come foreigners can outsource to us and do well selling here at the same time that many American corporations say that they must move production off shore and import the goods to remain competitive?"
A big part of the answer is our tax system. Because of the way corporate income and payroll taxes (not to mention the associated high compliance costs)get rolled up into our production costs at multiple levels, our manufactured goods carry a substantial hidden tax burden that must be recaptured via the pricing mechanism. That is true whether the goods are sold domestically or internationally. If sold domestically, they compete against imports which in many cases have had VAT taxes removed at the border. If sold into a VAT country, our goods have that country's VAT levied when brought across the border in many cases.
IOW, US goods sold here have 1 country's taxes included in their final price and they compete against imports having relatively negligible tax burden. US goods sold in many other countries have 2 countries' tax burdens included and they are competing against goods with only 1 country's tax included. In both cases, the advantage goes to the US competitor.
That is why it is so important to pass the FairTax so that we can put US goods on a level playing field with foreign competition as much as possible, at least with respect to the tax system. With globalization sweeping across the planet, it is absolutely essential.