> Might be controversial to say, but why manufacturing cost is so high in US they making outsourcing so profitable? I suspect that the falling rate of interest

> Might be controversial to say, but why manufacturing cost is so high in US they making outsourcing so profitable? I suspect that the falling rate of interest is the primary cause. The falling interest rate on house loans makes houses increasingly expensive, as potential home owners can afford more expensive houses (given the same income) the less they have to pay in interest. The same principle ought to apply to companies who buy factories for manufacturing, with the primary difference being that housing cannot be outsourced while manufacturing can. This hypothesis could be substantiated by looking at the degree to which countries with a long term falling interest rate outsource to countries with a long term stable or rising interest rate, and vice versa.