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Capital owners would much prefer running stuff locally: it's more expensive so the profit margin is higher. No headache with logistics. Predictable laws. Friend
by AlexTWithBeard 6y ago
Capital owners would much prefer running stuff locally: it's more expensive so the profit margin is higher. No headache with logistics. Predictable laws. Friendly courts.
It's customers who are not willing to pay the premium for locally made stuff.
As soon as one factory moves to China others have no choice, but to follow, otherwise they will lose the price war.
- consp 6y ago> It's customers who are not willing to pay the premium for locally made stuff. Or can't.
- NoZZz 6y agoBecause they outsourced their jobs!
- JAlexoid 6y agoOh please.... Most don't want to. (Presuming you're in US and generalizing) Being on NH you probably earn 2x the median US income. Do you own an American made luxury vehicle, that you probably can afford to lease or buy on credit? Probably not. And I bet it's because you don't want to.
- AlexandrB 6y agoThis is a really badly considered example because Tesla exists and I'm willing to bet that a large portion of HN wants to own a Tesla vehicle. A better example might be US-made clothing, which often comes with a premium price.
- JAlexoid 6y agoIt's an example. And as a Tesla owner - Tesla is shit.
- HarryHirsch 6y agoCapital owners would much prefer running stuff locally Empirically that's not the case. There are plenty of tales of outsourcing in pharma going wrong, yet the stock market rewards contracting out to CROs over doing stuff in-house. Recently: https://chemistryjobs.acs.org/job/29501/associate-director-drug-discovery-outsourcing- https://chemistryjobs.acs.org/job/29501/associate-director-d... Director of Outsourcing in Discovery. In Discovery. That's not even a cost center, the real costs are incurred later in the pipeline, at that stage you want to keep the life scientists, the structure guys and the synthetic chemists all in one building. But Genentech are now part of Roche and a public company needs to keep an eye on the stock market.