The manufacturing companies say that they can't pay the cost of labor to America's workers, but when overseas labor is a fraction of the cost, the price of their products still goes up.
2006-07-05 02:29:23 · 12 answers · asked by Vinny78 3 in Social Science ➔ Other - Social Science
Corporate greed makes sure that their profits quadrupled with the outsourcing strategy. They always point out that production of the same item here in the US is extremely high and uprofitable by their standards so they looked for cheap asian labor but kept pricing their porduct as if it was still being made here. So one could just imagime the huge profit.Walmart, Home Depot or Lowe's, Macy's, Sears are all seling product made from China. Almost 85% of their stocks are made there' but the prices quadrupled when displayed on their shelves. America is the biggest consumer of chinese products. Very little is being made in the US today. The US is slowly becoming like a 'third world country'
2006-07-05 03:00:28 · answer #1 · answered by tazaharra 3 · 0⤊ 1⤋
1/ A competitive business landscape means that they spend millions in advertising dollars to get you to buy their products.
2/ The benefits of outsourcing are not neccessarily passed on to the consumer.
3/ Labor is but one component of the cost of doing business.
2006-07-05 02:42:51 · answer #2 · answered by boston857 5 · 0⤊ 0⤋
By having lower manufacturing costs, companies are increasing their profit margin while selling their products at the same price as before. Keeping their shareholders happy.
2006-07-05 02:39:56 · answer #3 · answered by gatwick100 2 · 0⤊ 0⤋
I bought my first pair of new sandles in 5 years this weekend. I was shocked to find that they were only $10 (on sale). With real leather uppers. Of course, they were made in China. I think prices have gone down considerably, especially when you consider the value of the dollar adjusted for inflation. Perhaps only the latest fashions keep high prices, but I think if you calculate how many hours of work go into a purchase, prices for a lot of products (figured in hours of work required to purchase them) have gone down.
2006-07-05 03:50:17 · answer #4 · answered by Erika M 4 · 0⤊ 0⤋
They are already being "out sourced". Other expenses come into play like shipping cost, advertising, and the fact teenagers demand their parents buy the shoes that cost the most.
2006-07-05 02:33:32 · answer #5 · answered by Gregory B 3 · 0⤊ 0⤋
"money"
Some companies are making small fortunes off of this practice, but some companies have found that they will go out of business if they don't use overseas labor.
2006-07-05 02:33:28 · answer #6 · answered by Ilovechristjesustheking 3 · 0⤊ 0⤋
Because the top exec's suck up every penny they can on their own pay, bonuses, stock, expence accounts, company cars, premium health care, Company credit card for gas, expence accounts, and the rest of the "Percs" that they get.
2006-07-05 02:47:46 · answer #7 · answered by Anonymous · 0⤊ 0⤋
Profits... Pure Profits...
2006-07-05 03:38:25 · answer #8 · answered by sparkytdg1 2 · 0⤊ 0⤋
Greed.
2006-07-05 02:47:00 · answer #9 · answered by John B 4 · 0⤊ 0⤋
thats the funny part about it, they are cheap bastards, andall they want to do is make more money instead of trying to make better quality clothing
2006-07-05 02:32:59 · answer #10 · answered by cherriwaves 3 · 0⤊ 0⤋