[PUGACHEV]

I’ve heard the argument that labor rates are the deciding factor when companies mover their production out of the U.S., but I am not convinced that is the case. While there is no question a Mexican, Malaysian, or Chinese worker is paid less than their U.S. counterpart, I believe that advantage is more than offset by poor productivity, local customs, including bribery at every level, and transportation costs. I think the critical factors are taxes, regulation, including environmental factors which inhibit plant expansion, sometimes unions, and a general anti-business climate. That’s my take on it anyway.

[central_va]

Well you'd be wrong. Labor is about 8% of the cost of making a car. Complying with regs is a lot less per car. Regs come in two flavors: Regs concerning the car itself like MPG, fuel economy, mandated safety etc. And then regs concerning the workplace and the environment. The first flavor of regs applies to all cars wherever they are made. The second flavor of regs is where the "saving" comes in. Well not having to deal with OSHA, EPA on waste management etc, is not going to save much per car maybe a penny on the dollar, maybe none.

And then taxes. A Corp is going to pay taxes whether the car is made here or elsewhere.

Being able to exploit 3rd world labor and retail at first world prices is like crack cocaine to the Corporate staff and stock holder.