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But moving factories to the US just decreases your exposure to China-related epidemics, natural disasters and other crises at the expense of increasing your exp
by esoterica 7y ago
But moving factories to the US just decreases your exposure to China-related epidemics, natural disasters and other crises at the expense of increasing your exposure to US-related epidemics, natural disasters and other crises. You’re just trading one risk factor for another.
Reducing economic relations with another country means you have less power and influence over them, not more. Having hundreds of billions of dollars worth of trade conducted between two countries and having millions of their jobs tied to international trade is a good incentive for them not to antagonize you too much.
- allovernow 7y agoIt's not black and white. Any local outbreak is less likely to disrupt your domestic operations to the same degree that foreign dependence would. Primarily because the U.S. is a first world country where any disaster is more likely to be better dealt with and when the event is local, you have you have more reliable information for handling a disaster when you are communicating with local channels. Particularly when you are in a country with free speech and limited government suppression. In any case, to ideally minimize risk you want both foreign and domestic production, even if that means some degree of subsidy for local operations. There are other downsides to excessive free trade of labor and goods as well - we need a happy medium.