Why Do Some Economists Believe That American Corporations Will Close Down Their Overseas Factories And Come Back To America And Lower Prices And Hire Droves Of Americans When They Are Doing Just Fine Right Where They Are?


The only reason to go overseas is to avoid taxation or to obtain cheap labor. As emerging economy labor increases the value of low cost labor diminishes. However, the primary reason is simply cultural and institutional. It’s just a lot easier to do business in America than anywhere else on earth. The entire society is organized to help businesses compete.

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