jigokutamago said:
I don't understand. If producing locally results in a cheaper price, wouldn't firms just move towards producing locally, even under capitalism? |
Good question, we should ask those big corporations why they choose to produce halfway across the world rather than locally.
But if I may venture a guess, it's probably cause by producing halfway across the world they get tax incentives and other dirty tricks that allow them to maximize profit at the expense of everything else: quality, the environment, paying decent wages to their workers over there, consumers etc. Again Capitalism in all its splendor.