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InvisibleballsalsaMDiscord
Universally Loathed and Reviled
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Registered: 03/11/15
Posts: 21,989
Loc: Foreign Lands
Re: Why Donald Trump and Bernie are the Only Sensible Candidates. [Re: LogicaL Chaos] * 1
    #22766154 - 01/11/16 02:24 PM (8 years, 2 months ago)

Quote:

LogicaL Chaos said:
If u wanna compete globally, u need to outsource labor. It means your product or serice is cheaper, and becomes more attractive globally.

If u make everything in the US, industrialize the US, price of all US goods goes up as costs for labor since paying US employees is expensive compared to foreign employees.





Out-sourcing makes the cost of production cheaper.  This does not necessarily translate into any sort of savings for the consumer.

The inverse is also true. Higher production costs don't necessarily translate into higher prices, because you can only price a product as high as people will actually pay for it.  In other words, the only difference is in the % profit margin of the manufacturer.


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Edited by ballsalsa (01/11/16 02:27 PM)

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