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We can already buy Ford Focuses super cheap. With the amount of competition in the small car market it will only get cheaper. By having the lower priced Mexica
by sqeaky 10y ago
We can already buy Ford Focuses super cheap. With the amount of competition in the small car market it will only get cheaper.
By having the lower priced Mexican labor build the vehicles these can keep getting cheaper without major investment in technology that is unlikely to pay for itself and without reduction in American worker's wages.
This also allows American Factories to make higher profits by focusing on making higher margin models without Ford having to give up a market segment.
Also, Security is generally better at American plants so by allowing the foreign factories to only build the crap models they are unlikely to compete on the unauthorized manufacturing market.
Also, This does put some money and infrastructure into Mexico so we can benefit as their country has slightly fewer people try to cross the border illegally.
This is simple division of labor. It lets Americans focus on more profitable things, there is no way this is bad for Americans.
- swyman 10y ago> without reduction in American worker's wages. Those jobs would need to be replaced with something paying a similar wage for this to be true. Otherwise you'd move along the demand curve for labor to a point with the same number of total jobs and lower wages paid for each.
- sjdchid 10y agoWhat are "those jobs" you're referring to? This announcement also includes new models produced in the US and no layoffs as far as I can tell.