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To: freedomfiter2
ok, so when a furniture manufacturer closes their American operations and sets up shop in China, it’s not to avoid taxes or to find cheap labor?

From the article: Indeed, US manufacturing companies invest a modest $2 billion a year in China, compared to $30 billion a year in Europe.

Still, the taxes in host countries tends to be cheaper so yes of course they are trying to avoid taxes. As for the cheap labor, the same thing happened when unionized shoe and textile factories moved out of New England into the lower taxed and right-to-work states of the sunbelt. No one wept for New England then. In general, this gripe about sending jobs overseas is very typical union propaganda.

7 posted on 10/27/2010 5:21:35 AM PDT by rhombus
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To: rhombus
"the taxes in host countries tends to be cheaper so yes of course they are trying to avoid taxes."

Totally illogical. Consider this: "Winter temperatures in Canada are lower than in the U.S.; so, yes, manufactures moving to Canada are trying to avoid the warmer U.S. climate."

The trap you fall into is called spurious correlation. Look it up.

30 posted on 10/27/2010 6:43:04 AM PDT by TopQuark
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