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The safe choice is not to build the factory. Even if you build the factory in the US to avoid tariffs on the goods you sell, did all your inputs also get built
by lostdog 2y ago
The safe choice is not to build the factory.
Even if you build the factory in the US to avoid tariffs on the goods you sell, did all your inputs also get built in the US? Are the tariffs on your inputs going to wipe out your profits?
To build a factory you want to predict out the cost vs benefit. But if the costs are highly uncertain, then the numbers in your spreadsheet fluctuate wildly. So you just sit on the money you have and wait to build the factory until things are more certain.