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To: expat_panama

ok, so when a furniture manufacturer closes their American operations and sets up shop in China, it’s not to avoid taxes or to find cheap labor?


3 posted on 10/27/2010 5:05:04 AM PDT by freedomfiter2
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To: freedomfiter2
ok, so when a furniture manufacturer closes their American operations and sets up shop in China, it’s not to avoid taxes or to find cheap labor?

From the article: Indeed, US manufacturing companies invest a modest $2 billion a year in China, compared to $30 billion a year in Europe.

Still, the taxes in host countries tends to be cheaper so yes of course they are trying to avoid taxes. As for the cheap labor, the same thing happened when unionized shoe and textile factories moved out of New England into the lower taxed and right-to-work states of the sunbelt. No one wept for New England then. In general, this gripe about sending jobs overseas is very typical union propaganda.

7 posted on 10/27/2010 5:21:35 AM PDT by rhombus
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To: freedomfiter2
", so when a furniture manufacturer closes their American operations and sets up shop in China, it’s not to avoid taxes or to find cheap labor?"

Not necessarily. If your furniture goes mostly to China, you save a ton on shipping by setting up shop there; it was a mistake to open it up here in the first place.

There are many factors that go into the decisions on location choice. Taxes and cost of labor are just two of them.

The true and strongest advantage we have always had but are rapidly losing is our institutions: an investment in America was safe from the government changes, rampaging mobs and extortion by local police. Under Obama, we are considered by many less politically stable than China.

In any event, it is too simplistic to think that oversees locations are chosen to avoid taxes and high salaries. That is what the leftists want you to think and anger you against "capitalists." Don't let them succeed.

27 posted on 10/27/2010 6:32:40 AM PDT by TopQuark
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To: freedomfiter2
ok, so when a furniture manufacturer closes their American operations and sets up shop in China, it’s not to avoid taxes or to find cheap labor?

In addition to accessing workers for as little as $1 per hour or less, it's to avoid even minimal pesky safety and environmental regulations. Think plastic in pet food, lead and cadmium in children's jewelry, and antifreeze used as a sweetener in toothpaste and cough medicine.
46 posted on 10/27/2010 7:30:35 AM PDT by algernonpj (He who pays the piper . . .)
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