By using this site, you agree to our Privacy Policy and our Terms of Use. Close
CrazyGamer2017 said:
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.

You raise a valid point there, in that they are able to pay the workers lower wages, but it seems like that'd go against your assertion that it'd be cheaper to produce it locally. The thing is, it's cheaper to do it abroad, that's why a lot of industries are moving to other countries. Agricultural is no different.