Business Question...

So I know a guy who owns a business, this business is fairly new, but has many regulatory hoops to jump through. He started it in Kentucky as they were the most accepting of the business model, with the least restrictions.

Yeah, he should definitely go to Mexico.  

Edited by GroupB - 08 November 2010 at 8:26am

GroupB wrote: Yeah, he should definitely go to Mexico.   IB4 "GOTCHA! YOU SUPPORT OUTSOURCING BAWWWWWW!"

The Reaper wrote: I'm talking about China,

Oh the irony of China being a governmental communism.
Also, why wasn't this just posted in the "Politics" thread?

stratoaxe wrote: Outsourcing to China is a completely legitimate business strategy,

Not to mention that it is, at its core, one of the most capitalistic things one could do.

You know, free enterprise and all that.

oldpbnoob wrote: I've actually read a few times that outsourcing to China isn't quite as lucrative as it used to be. The cost of manufacturing in the coastal regions is getting more and more expensive due to the increased pay/conditions demands by the workers and has been moving farther inland to the less populated regions.

This is also correct.

As China climbs up into the northern hemisphere, and especially as the communication within the country from the outside world opens up, the people in the country expect to have a northern hemisphere quality of life.

And, funny enough, that means they are not so OK with a lot of the things that have been going on, like a lack of fair-wage regulation and a horrendous lack of safety and environmental oversight by the government. Another thing contributing to it is the growth of higher education within China and a move to slightly more services-driven economy. As more people are getting education, and more people are willing to hire people for services, there are fewer people willing to sit in a sweltering factory and twist a widget for 16 hours per day.

oldpbnoob wrote: Yes it is ironic that Americans complain about jobs going overseas to a communist country where the workers put in 84 hour work weeks in horrible conditions for 10% of the pay.

That's the irony though, because people largely don't know the actual definitions of things like "communism," and such.

The communist country has less business regulation - something the FE types have been marching for years for - than the U.S. does. That's why they get the international businesses moving production and assembly there.

Do we want 84-hour work weeks and a $1.30 minimum wage here?

agentwhale007 wrote: oldpbnoob wrote: Yes it is ironic that Americans complain about jobs going overseas to a communist country where the workers put in 84 hour work weeks in horrible conditions for 10% of the pay. That's the irony though, because people largely don't know the actual definitions of things like "communism," and such. The communist country has less business regulation - something the FE types have been marching for years for - than the U.S. does. That's why they get the international businesses moving production and assembly there. Do we want 84-hour work weeks and a $1.30 minimum wage here?

And the unions are perpetuating the problem. I was talking to one of my wifes cousins a couple of years ago that was discussing the possibility of the company he was working for going on strike. The union was rabble rousing telling all the union members that the company was threatening to move production to Mexico unless the employees took a pay cut. It sucked, but the only way the company could keep the factory there. The union was calling shens, said the company was just greedy and went on strike anyways. The company shut down operations as they said they would and moved to Mexico. When I asked him why not just take the pay cut, his answer was that he would rather see the plant close down than reduce any of his benefits. He said the place in Mexico only paid the workers there $3.00/day and he couldn't live on that. When I pointed out that the company wasn't offering him $3./day but a fair wage, just not what they wanted, he got a little hot. I've seen/heard it time and time again. No one wants to make concessions, they want the company to magically be able to pay them whatever they demand and still be able to sell their products at a loss and stay in business.

The Reaper wrote: lol.

Edited by agentwhale007 - 08 November 2010 at 12:28pm

oldpbnoob wrote: And the unions are perpetuating the problem.