Are foreign owned US factories in the US, who employ mostly US workers, a bad thing for the US?

Question

Toyota owns some of the largest auto factories in the US that employs 1000s of US workers. Is that good for the US even though Toyota is a major competitor of GM & Ford?

Answer 1

they pay taxes right? they employ americans right? they drive down prices and provide more variety dont they? i don't see what the problem is...

Answer 2

What's very interesting is that whenever a question of this type is posed anywhere, there will be a group of people who will say all the benefits and profits will go to Japan and leaves an impression that all this is a giant ploy to decieve American public. I am not at all surprised if the person asking this question intended the discussion to deterirate to this point and it was the purpose of the question.

While there is a small element of truth in this argument, it is entirely missing a huge portion where it will actually benefit the American society.

Firstly, most employees are American citizens. They get a stable employment where perhaps not much have existed before. Let's not forget, we do have more workers than jobs at the moment and has been like this for many years....

Secondly, as this type of large factories employ thousands of employees, a local community will form and hopefully thrive, where as perhaps it was a sparsely populated area before.

Thirdly, these factories will require suppliers to supply many compnents which will spawn a huge secondary line of factories just to supply these companies which also employ people.

Let's also not forget local, state, and Federal tax these company will be paying as these factories are setup as an American company (owned by Japanese company)

Now, ask yourself.... if this were a GM factory, will US government and all local government get any MORE benefit? How about people of the area?

One of the facts many people overlook is that US made "Japanese" cars contain very little compnents that were actually shipped from Japan. (mainly the engine and transmission) Most of them are actually locally sourced. When in doublt, look at the stickers on the car. It will give you the percentage of parts' origin.

Lastly, for those who object, what would you propose? The fact has been positive that people will continue to buy Toyota products....

Answer 3

A bad thing, I don't think so. Would it better if the Detroit Big Three where doing better, yes.

But look at the jobs they provide, not just manufacturing, which is the biggest benefit. They also create tax revenue. They contract pipefitters, electricians, masons, labors, etc. when they add a plant or add a new line. They bring in Japanese engineers, but they live here, so their income stays here. It causes an increase in local population, which spurs construction.

But another benefit is competition. Sorry, to UAW members, but Toyota and Honda are turning the conventional method of manufacturing on its ear. The Big Three need to take notice. There is a local plant here, and most people that I know that work there, actually enjoy their jobs, and take pride in their work. They work long hard hours. At least from my understanding, if they increase production, they don't bring in extra workers, but have them work longer. And the employees are happy with the overtime. People move from position to position, covering various aspects of the line. So employees are interested in various aspects. There seems to be less friction between workers and management.

And Toyota knows they are competing with the Big Three, so pay comparable wages and benefits.

I don't know all the details of being employed there and the logistics, but from my understanding it is a good job.

Sure some of the profits end up back in Japan. But one can't deny the boom to local economies.

So the domestic manufacturers need to take a lesson from Toyota and Honda.

Answer 4

I'm not sure. I believe that auto workers are paid a decent wage so it is adding to the economy. I guess it depends on how much money is leaving the US for the value it is putting in.

In caribbean countries like St. Lucia, foreign owned hotels employ mainly Lucians but in low paying jobs such as maid, waiter, clerk, etc. and most of the profits leave the country.

So, it would depend on the balance between the value added by wages paid to workers, taxes paid by the corporation and corporate citizenship such as sponsorship of local events and donations to local charities vs. the capital leaving the country.

Answer 5

all it means is that everything that is made in those plants and everything that is sold goes to benefit a company in japan, not the usa.