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Old 02-08-2004, 19:18   #6
NousDefionsDoc
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Join Date: Jan 2004
Location: LA
Posts: 1,653
I don't know if Bangladesh does or not. It was merely an example. I know what you are saying, but the US consumer will only buy his favorite brand as long as the price is competetive to the others in the same market for most items. Remember how many people started smoking generic cigarettes when the taxes went way up?

Why is it more cost effective to have a business unit thousands of miles away? Where is the savings? In the worker's wages and the exchange rates for the most part. The tax rate in Colombia, Ecuador and Venezuela is higher than the US. Ecuador doesn't have an exchange rate. But you can get a secretary for less than $1,000 a month all in. You can get workers for about $500 a month.

I think a lot of the businesses, at least the ones I have been involved in, are moving to China to go after the Chinese market - a different set of dogs altogether.

But is Michael Dell selling a lot of computers to Indians? Is that why he moved his call center there?

I agree that the US is failing to compete. Taxes are one reason. But do we lower our worker's standard of living in order to compete with third world countries for the available jobs of our own US companies?

The decision to lower costs by moving US jobs overseas is profit driven. So you take away the profit incentive or level the profit here, at the worker's expense.
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