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This is how companies think: If you can make something in the US for $5 and sell it for $300 you make $295 profit. If you can make it in China and ship it to
by onion2k 5y ago
This is how companies think:
If you can make something in the US for $5 and sell it for $300 you make $295 profit.
If you can make it in China and ship it to the US for $4 you make $296 profit.
Therefore its better to make it in China. They disregard literally every other benefit.
- q-big 5y agoWhat you give as an example is a product with insanely high margins. Here, it indeed makes sense to produce it in your home country, because it won't make a huge difference. Most products on a market have slim margins and here such production costs make a huge difference in profit if the buyer is not willing to pay much more for products (partially) produced in the home country.