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fear of US businesses moving overseas - 6/9/2011 9:32:31 AM   
defiantbadgirl


Posts: 2988
Joined: 11/14/2005
Status: offline 		Some people argue that making outsourcing too expensive will lead to business owners moving themselves, their families, and their corporate offices to the countries they outsource to. I think this is highly unlikely. Even if they know how to read, write, and speak Chinese and Hindi (most common language in India), living in another country means living by their laws. They could be imprisoned for saying the wrong thing, which would be pretty easy to do for anyone used to having freedom of speech. I doubt they're going to move their wives and daughters to India, considering the way women are treated there.

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RE: fear of US businesses moving overseas - 6/9/2011 9:35:56 AM   
SilverMark


Posts: 3457
Joined: 5/9/2007
Status: offline 		I have been to China, I'm not certain there is enough money to ever convince me to live there!

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RE: fear of US businesses moving overseas - 6/9/2011 9:46:18 AM   
willbeurdaddy


Posts: 11894
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Status: offline 		Who would even bother to argue that? Its irrelevant where business owners live, it only matters where the company pays its taxes, what regulations it faces in manufacturing and where its markets are. Total strawman.

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RE: fear of US businesses moving overseas - 6/9/2011 11:11:28 AM   
servantforuse


Posts: 6363
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Status: offline 		You can move a company to another country and never even go there.

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RE: fear of US businesses moving overseas - 6/9/2011 11:54:01 AM   
Fellow


Posts: 1486
Joined: 9/21/2009
Status: offline 		US business moving overseas means just one foreign business. I think, businesses who produce mostly overseas should be forced to move. In addition, the trade agreements should include a zero trade balance requirement. 

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RE: fear of US businesses moving overseas - 6/9/2011 11:54:22 AM   
DarkSteven


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quote:

ORIGINAL: defiantbadgirl

Some people argue that making outsourcing too expensive will lead to business owners moving themselves, their families, and their corporate offices to the countries they outsource to.

  Never heard that at all.
quote:



I think this is highly unlikely. Even if they know how to read, write, and speak Chinese and Hindi (most common language in India), living in another country means living by their laws. They could be imprisoned for saying the wrong thing, which would be pretty easy to do for anyone used to having freedom of speech. I doubt they're going to move their wives and daughters to India, considering the way women are treated there.


DBG, please give a link.  None of this makes sense to me at all.

1. Making outsourcing too expensive?  Your post seems to imply that this is something politically created, rather than something that happens when a nation's standard of living improves.  And unless the dollar devalues, it's not that outsourcing to all countries gets pricier, but outsourcing to A specific country.  Mexico became too expensive relative to China, China is getting more expensive compared to Vietnam, and Africa may be more attractive in the future.

2. By far the major reason for moving operations to another country is that it's cheaper there. (It also opens up possibilities of overseas sales close to manufacturing, but exporting is a lot easier than splitting a company over multiple countries.)   Doing so incurs huge issues with communications and resolving production issues over multiple cultures is incredibly hard.  If it became less feasible monetarily to manufacture overseas, then manufacturing would move back to the US.  I cannot fathom why moving corp offices overseas would make any sense whatsoever.

3. Trust me, corps are fully aware of overseas differences in cultures and laws.  Hell, I took a class in business cultural differences as a student in 1990.  No business would relocate corp offices overseas without doing a full investigation.  They're not as stupid as you seem to think.

4. If a business did relocate their corporate offices and manufacturing overseas, what would be the difference between themself and an entirely foreign company?

I'm far more concerned about losing thousands of lower level jobs overseas than three or four C level jobs.


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RE: fear of US businesses moving overseas - 6/9/2011 12:13:45 PM   
SilverMark


Posts: 3457
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Status: offline 		Most of what is produced in China for retail, is brokered to the buyers here who then re-sell it. The manufacturing done in China is oft times contracted as opposed to the sellers here owning the plants there. China has strict regulations on ownership of land and facillities, with the strictest being the actual land.

I stopped buying direct a few years ago due to a lack of back-up on the ground here.Now I allow others to take the risk and just shorten my margins. The balancing of inventories as business slowed became far to difficult, too costly, and tied up too much cash in the way of letters of credit.

I detest buying from there, but there are not enough manufacturers producing in the U.S. to offer a wide enough variety to satisfy consumer demand.
In other words...It SUCKS buying from them but, not many options, and the consumers seem to care less about quality than they do PRICE.

_____________________________

If you have sex with a siamese twin, is it considered a threesome?

The trouble with ignorance is that it picks up confidence as it goes along.
- Arnold H. Glasow

It may be your sole purpose in life to simply serve as a warning to others!

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RE: fear of US businesses moving overseas - 6/9/2011 3:32:51 PM   
Termyn8or


Posts: 18681
Joined: 11/12/2005
Status: offline 		"and the consumers seem to care less about quality than they do PRICE. "

That is, and has been the root of the whole problem.

Sure the time is ripe to buy "American". Oops, too late.

T^T

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RE: fear of US businesses moving overseas - 6/9/2011 4:10:34 PM   
SilverMark


Posts: 3457
Joined: 5/9/2007
Status: offline 		You are absolutely correct T !!!

_____________________________

If you have sex with a siamese twin, is it considered a threesome?

The trouble with ignorance is that it picks up confidence as it goes along.
- Arnold H. Glasow

It may be your sole purpose in life to simply serve as a warning to others!

(in reply to Termyn8or)
Profile   Post #: 9
RE: fear of US businesses moving overseas - 6/10/2011 2:10:14 PM   
jlf1961


Posts: 14840
Joined: 6/10/2008
From: Somewhere Texas
Status: offline 		The Conservative backing US Chamber of Commerce is promoting this, and they paid lots in campaign contributions to the republicans.

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RE: fear of US businesses moving overseas - 6/10/2011 2:17:43 PM   
Musicmystery


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quote:

the trade agreements should include a zero trade balance requirement.


That would be problematic. Unless you force private producers or consumers to buy the goods their government mandates, the difference would have to be settled, likely through the current accounts, which would potentially disrupt currencies through sudden demand/supply. We may as well go back to Bretton Woods.

The way we handle it today simply works more efficiently, honestly, and in accord with markets.

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RE: fear of US businesses moving overseas - 6/10/2011 2:19:38 PM   
Musicmystery


Posts: 30259
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quote:

ORIGINAL: Termyn8or

"and the consumers seem to care less about quality than they do PRICE. "

That is, and has been the root of the whole problem.

Sure the time is ripe to buy "American". Oops, too late.

T^T

And the problem here is that "Made in America" is not synonymous with quality either.

(in reply to Termyn8or)
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RE: fear of US businesses moving overseas - 6/10/2011 2:24:07 PM   
willbeurdaddy


Posts: 11894
Joined: 4/8/2006
Status: offline
quote:

ORIGINAL: Musicmystery


quote:

ORIGINAL: Termyn8or

"and the consumers seem to care less about quality than they do PRICE. "

That is, and has been the root of the whole problem.

Sure the time is ripe to buy "American". Oops, too late.

T^T

And the problem here is that "Made in America" is not synonymous with quality either.


And even worse, it is not synonymous with "value".


_____________________________

Hear the lark
and harken
to the barking of the dogfox,
gone to ground.

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RE: fear of US businesses moving overseas - 6/13/2011 9:23:15 PM   
DarkSteven


Posts: 28072
Joined: 5/2/2008
Status: offline 		Actually, according to Forbes, the exact opposite is happening: the Chinese wealthy are moving HERE: http://blogs.forbes.com/gordonchang/2011/06/05/chinese-entrepreneurs-are-leaving-china/

_____________________________

"You women....

The small-breasted ones want larger breasts. The large-breasted ones want smaller ones. The straight-haired ones curl their hair, and the curly-haired ones straighten theirs...

Quit fretting. We men love you."

(in reply to willbeurdaddy)
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RE: fear of US businesses moving overseas - 6/14/2011 4:32:26 AM   
Moonhead


Posts: 16520
Joined: 9/21/2009
Status: offline
quote:

ORIGINAL: Termyn8or
Sure the time is ripe to buy "American". Oops, too late.

You can still get a stupidly expensive Gibson or Fender that was manufactured domestically, rather than a cheap Korean one, I think.

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