It’s what they are good at, comparing costs and maximizing profits.
They will find the way to get around it at least partially even if they have to invest into fully automatic production with limited human labor.
It’s what they are good at, comparing costs and maximizing profits.
They will find the way to get around it at least partially even if they have to invest into fully automatic production with limited human labor.
Managers of these companies are good at doing that and are richly rewarded for doing so. Instead of China it might be other cheap labor place like Vietnam, India or even eastern Europe.
Just take Ford as example, they made trucks in Turkey, imported trucks as passenger vehicles to get around chicken tax, de-mounted passengers seats in states to sell it as protected trucks.
Eventually they got caught. But do you think they would to this gray business if it wasn’t profitable ?
Even if we look at it as having $1.3 billion USD “loan” without a mortgage, because they eventually had to pay back these taxes, it’s still profitable because these $$$ allowed them to build more and sell more in less time + they saved costs on cheap labor.
Ain’t the chicken tax already being evaded by Ford making trucks in Turkey ?
They could but they are after maximizing profit. Why else would be corporates moving their factories to the other end of the world? To give poor people a job? Or to reduce costs because domestic labour is much more expensive?
Won’t automakers be moving their production lines aboard as result ? There are companies that moved production abroad to reduce costs or/and not have to care about working conditions. Just saying.
I’m quite surprised they actually allowed to stick unknown USB into computer they will be selling to their customers 😮