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Home Topics in Depth Economics Flags of inconvenience

  • Akallabeth (2234 posts)
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    Flags of inconvenience

    Multinational corporations increasingly make more and more of their money overseas, as oposed to the countries they are nominally based in. Some also do most of their hiring elsewhere. (There is competitive pressure to “optimize” their activities around the world doing each thing where they can get the most value for their money, for example, they might do their R&D in Silicon Valley, their marketing in New York, their manufacturing in Asia and their support for customers from Ireland or India.)

    Many “US” products have a reputation for quality so it could be said that what they are really bundling is the management expertise to make a product thats seen as valuable. Its not as much where it comes from, because of the global supply chains approach, that is complex – is for a complex product like a car typically dozens or even hundreds of different places all around the world, its what it is.

    http://www.economist.com/news/business/21602237-flags-inconvenience

    So Americans, because of our high cost of living, really have to invest in our people or we’re handing our own countrymen what amounts almost to a death sentence. Because it makes absolutely no sense for people living in the US to do low skill, low wage jobs.  Anybody who claims that we can just go on the way we did in the past is lying. Such jobs wont even exist any more, soon. Machines will do all of them.

     

    jwirr, Doremus Jessup, PADemD like this
    "Out of many, one"

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