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In the long term, Cisco needs to be competitive in the global marketplace to survive. When you force companies like Cisco to pay above market rates, it benefits
by throwaway28473 8y ago
In the long term, Cisco needs to be competitive in the global marketplace to survive. When you force companies like Cisco to pay above market rates, it benefits American workers in the short term but over time the company will lose to e.g. Huawei who are operating in a much more favourable regulatory environment. At that point, America loses in a big way.
- clairamerican12 8y agoHuawei's favorable regulatory environment has less to do with its ability to bring in foreign labor like Cisco and other US tech companies, and more to do with trade barriers set up by China for national security purposes (also, potentially other actions in violation of its membership in the WTO). The US claims Huawei as a national security threat, because the Chinese government could be using their devices to backdoor critical infrastructure. In the same manner, China claims Cisco as a national security threat [1]. The point here is that the spherical cow of all things being rootless, unbound, purely individual and rational economic transactions does not actually exist. Behaving as if it does is a loss for your group as other groups adopt more mercantile policy. [1] https://www.bloomberg.com/news/articles/2013-06-25/cisco-china-sales-vulnerable-as-media-urge-domestic-shift https://www.bloomberg.com/news/articles/2013-06-25/cisco-chi...