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American companies heading to China
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Dilvish View Drop Down
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Posts: 99 		  Quote Dilvish Quote  Post ReplyReply Direct Link To This Post Topic: American companies heading to China
    Posted: 18-Jan-2007 at 22:07

Some companies have rooted many factories in China to reduce pay to employees significantly and increase profits. Some companies such as Nike has a number of factories in China making the same original shoes spending approximately $10.00 on materials and $2.00 per employee per month. So they spend like 10 dollars to make the shoes and then they come and sell teh air forces in America at $60.00. Do you think this is fair. Do you think that if the product is made in China should it stay and be sold in China. Should teh U.N. apply sanctions to stop this. In the end American revenue is the one being hurt while the Chinese revenue is skyrocketing because of this economic unfairness.

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Denis View Drop Down
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Posts: 207 		  Quote Denis Quote  Post ReplyReply Direct Link To This Post Posted: 18-Jan-2007 at 22:28
Its to do with Chinese currency as far as I'm aware. There are devaluing it so as to make their exports cheaper in relation to other currencies.
 
And no, the answer to the emergence of China as an economic power is not through closing your door to it. Well, not in my humblest of opinions anyway. There is much more to the development of a product than the manufacturing level of it. In fact, thats probably the least profitable stage (For employment opportunities and the economy) of product development:
 
"Death belongs to God alone. By what right do men touch that unknown thing"

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Posts: 3335 		  Quote pekau Quote  Post ReplyReply Direct Link To This Post Posted: 18-Jan-2007 at 22:53

Business is about money. The only rule for the companies and investments are to max. the profit with least amount of money invested.

Furthermore, China has a lot of land and cheap labor available. These workers are not forced, they have no choice. If you had a job that paid you 2 dollars, would you take it? If you were poor Chinese in the urual area... I would take it. It's better than nothing. And the wage you mentioned is acceptable for their survival. You should look at the slave industries around the world... $2.00 is actually appealing to many workers in the developing world.
     
   
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Posts: 1230 		  Quote Adalwolf Quote  Post ReplyReply Direct Link To This Post Posted: 19-Jan-2007 at 12:38
Originally posted by pekau

Business is about money. The only rule for the companies and investments are to max. the profit with least amount of money invested.

Furthermore, China has a lot of land and cheap labor available. These workers are not forced, they have no choice. If you had a job that paid you 2 dollars, would you take it? If you were poor Chinese in the urual area... I would take it. It's better than nothing. And the wage you mentioned is acceptable for their survival. You should look at the slave industries around the world... $2.00 is actually appealing to many workers in the developing world.


If I was a poor person in rural China I would not work in a factory. I would farm, just as people have been doing in China for thousands of years.

I realize why companies move overseas, to save money, but I feel there is more to life than money. Besides, I don't think its a good idea for the US, or for any country for that matter, to lose basically all its manufacturing capability.


Edited by Adalwolf - 19-Jan-2007 at 13:17
Concrete is heavy; iron is hard--but the grass will prevail.
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Posts: 8595 		  Quote Seko Quote  Post ReplyReply Direct Link To This Post Posted: 19-Jan-2007 at 13:08
Originally posted by Dilvish

Some companies have rooted many factories in China to reduce pay to employees significantly and increase profits. Some companies such as Nike has a number of factories in China making the same original shoes spending approximately $10.00 on materials and $2.00 per employee per month. So they spend like 10 dollars to make the shoes and then they come and sell teh air forces in America at $60.00. Do you think this is fair. Do you think that if the product is made in China should it stay and be sold in China. Should teh U.N. apply sanctions to stop this. In the end American revenue is the one being hurt while the Chinese revenue is skyrocketing because of this economic unfairness.

 
Dispite the uproar on moral grounds this practice actually is fair. Even low paying jobs have workers willing to fill them up. It's really up to the Chinese government to control if they want.
 
The business owner will seek cheap manufacturing. The middle man will jack up prices to manage his cost and make a profit. The retailer will then do the same.
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poirot View Drop Down
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Posts: 1838 		  Quote poirot Quote  Post ReplyReply Direct Link To This Post Posted: 19-Jan-2007 at 17:20
The outsourcing of manufacturing to developing countries like China and India is in the long term beneficial to developed countries like the United States, Japan, and Germany.  Simply a lesson of competitive advantage.  With inefficient basic manufacturing moved to more efficient and cost effective areas, developed countries can focus more on creative processes that drive business and innovation.  What is sacrificed in low level employment is gained in more efficient high level innovation and resource - as long as innovation stays within developed countries like the U.S.  Overall, the consummate benefits outweigh the costs.

Edited by poirot - 19-Jan-2007 at 17:20
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eaglecap View Drop Down
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Posts: 3959 		  Quote eaglecap Quote  Post ReplyReply Direct Link To This Post Posted: 20-Jan-2007 at 15:12
Originally posted by pekau

Business is about money. The only rule for the companies and investments are to max. the profit with least amount of money invested.


Furthermore, China has a lot of land and cheap labor available. These workers are not forced, they have no choice. If you had a job that paid you 2 dollars, would you take it? If you were poor Chinese in the urual area... I would take it. It's better than nothing. And the wage you mentioned is acceptable for their survival. You should look at the slave industries around the world... $2.00 is actually appealing to many workers in the developing world.


In my humble opinion they are traitors and they should be taxed heavily for the imports into the U.S.
read "The China Threat" by Bill Gertz
Many of these greedy American companies, that had gone to Mexico, are also moving to China because they can pay someone 50 cents an hour vs 1.50
Λοιπόν, αδελφοί και οι συμπολίτες και οι στρατιώτες, να θυμάστε αυτό ώστε μνημόσυνο σας, φήμη και ελευθερία σας θα ε
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