Originally posted by Midnight
To the Investors, a question... Give an honest answer.
ABC Company makes a product that is very useful and sells well. For each unit sold, ABC makes a 15% net profit. A company overseas says they can make the same item with almost identical quality, but much cheaper and will be able to provide a net profit of 20%.
The investors know that if they switch to the overseas company to manufacturer the product, 1000 American workers will loose their jobs and the overseas company will pay very low wages to their workers, not to mention the manufacturing plant will put out at least 30% more pollutants and dump thier toxic wastes directly into the ground near a water supply for the local village where the workers live in small apartments and huts.
As an investor, would you keep the manufacturing in America, or move it overseas?
on what their competitors do? does co DEF, GHI and JKL keep their operations in the states or are they moving overseas?
my guess is they all will be overseas or be out of biz as the ones that stay will be undercut..
