can america just take back all their business that they have shipped over to china?
I'm not Einstein but wouldn't that be the only solution to the crisis? If we are not making any product then how can we make money? I think that the only solution would be to get our stuff out of china and start to make the stuff here. What do you think? I haven't heard that idea before but wouldn't it work?
Other - Business & Finance - 4 Answers
Random Answers, Critics, Comments, Opinions :
1 :
There are many complications. But one to highlight is that China owns a lot of US stock and debt instruments. If we take back all our business, they retaliate and cash in on our debt to them with interest. That's the start of an economic war, with implications in other areas of diplomacy.
2 :
Yes, all the businesses could be shipped back. No one knows what else to do..
3 :
America have many big companies. They need to cut down the cost of their stuff. Then sell it in low price. If they shipped back their production. They have to pay the high cost of labor. Then, Eruopean and Japan's companies would use this to compete against those such as IBM, MS, GE..... Then, American companies would become weaker and weaker. They will lost their control of world' market.
4 :
In theory it can be done. But there are too fundamental difficulties. First, it's very difficult to recover capital investments if a business has already had manufacturing facilities setup in China. 2. There are still significant differences in labor costs between China and America. It is very difficult for some businesses to digest such difference.
