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To: garbanzo
The costs to employers is low which is why they hire them or move the jobs elsewhere if possible. This is why markets are hated by would-be know-it-alls - they are unflinchingly honest about what people really value and how much they really value it.

In terms of manufacturing this is a well known myth, and is one of the reasons why relocating plants offshore has had mixed success. Labor as a percentage of manufacturing costs ranges around 15%, so at the most you might gain a 10% reduction in overall cost. Add in all the additional expenses of a broken supply chain, cultural problems, and other related issues, and often you actually end up losing money.

690 posted on 01/02/2002 2:06:46 PM PST by UberVernunft
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To: UberVernunft
If the company loses money, it will either (a) go back to the good ol' USA, or go out of business.

Markets tend to be self-correcting because of this issue.

We made a country where no sane person would want to run a business. Now, we complain when all the sane businesspersons go elsewhere to run their businesses. Am I the only guy who sees the logical disconnect here?

692 posted on 01/02/2002 2:09:45 PM PST by Poohbah
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