Why Do Companies Need to Go Overseas?

http://smallbusiness.chron.com/companies-need-overseas-58292.html

Regulation

Moving to a country with fewer or more relaxed regulations may allow a company to innovate, grow and take risks more easily than it could at home. Economies that let firms operate with minimal interference and controls from government can be seen as attractive places to do business. A company may decide to relocate if doing so would allow it to avoid anti-competition and labor laws or price-fixing rules.

Labor Costs

The U.S. federal minimum wage stood at $7.25 in May 2012 -- a figure unchanged since July 24, 2009. U.S. companies can pay workers a fraction of this in countries such as China and India. Outsourcing the production of goods and the operation of administrative services such as call centers can have a dramatic impact on the operating costs of a business. Companies may also be able to procure cheaper land and natural resources in countries other than the U.S.

AND

Companies are not going to leave the United States anymore without consequences," Trump declared Thursday. "Not gonna happen. It's not gonna happen."

Trump said he decided to intervene after watching a television news report that reminded him that he had vowed during the campaign, "We're not going to let Carrier leave."

Trump's determination to use a mixture of incentives and tariffs to keep jobs from going overseas represents a sharp break with the free-market wing of the Republican Party, including senior congressional leaders. On Thursday, top Republicans offered careful responses to the Carrier deal.

"It will be interesting to see what happens with the company I am working for that just expanded their office and plans to hire many more India people just recently!"

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Replies

  • He may be able to stop companies from leaving this country but can he stop the influx of cheap labor coming into the US.  I am sick of being called from people that barely speak English trying to con me into repairing my computer and they are a microsoft partner. I just tell them I do not have a computer and hang up.  

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