Here is a hypothetical question for two hypothetical car companies.
One car company is the $20,000 USA Motors, Inc. car. It's a mid-sized
passenger car. The other car is the Fx Motors, Inc, and they also
offer a $20,000 family car. USA Motors is Headquartered in Detroit,
but their cars are assembled in Mexico of parts mostly made in China.
USA Motor's stock is traded on the NYSE, and it is a domestic company
in this regards.
Fx Motors is HQ'ed in China, and their cars, for the American markets,
are assembled in the USA. They buy most of the car parts from
American vendors. For example, they purchase the transmission and
mufflers from a company in Kansas that makes these products. However,
Fx Motors is listed on the NYSE as an ADR, since it is HQ'ed in
Q1: Purchasing from which car company is more beneficial to America's
economy, assuming that the cars are identical in quality?
Q2: What is the criteria's of being an "American" comapny: Most
revenues are from USA; Most employees are from USA; or Corporate HQs
is in USA?
Thats a very complex question.
The very fundamental point is that car manufacture still provides
lots of jobs for lots of americans, and many of them cant easily
get another job, essentially because the car manufacturing industry
is so concentrated in a few places that depend on that employment.
Detroit has already come down a hell of a long way since its heyday.
Yes, much of that is because of the stupid approach so many of
the industry majors have done things, but that doesnt alter the fact
that if there was no longer any significant car manufacturing in the
US, that would have a massive effect on a hell of a lot of people.
There arent that many cars that are done like that even now.
There are none of those either. You only see that with Japanese cars currently.
No foreign car manufacturing operations operate like that.
If there really were car operations like your scenario, clearly the car from Fx.
But there arent, so its a completely academic example.
There is no simple answer for something like that.
Nope in spades.
It isnt even where they make most of their money either.
Its rather silly to claim that say Walmart isnt an american company
because they mostly sell stuff that gets made in China etc.
Reminds me of something from way back in the mythical 90s.
Seems a little city upstate NY wanted to buy an industrial crane.
They put out tenders and waited. And finally settled on a nice machine.
Unfortunately, after the result was published the Korean-sounding name
of the company attracted the ire of the local citizenry.
[Insert b&w of torch-wielding mob here].
As fate would have it, at that time the local bigwig was having
some kind of family problems that were regularly hitting newspapers
headlines there-abouts, so to avoid a little extra heat she issued an
edict that saw the Korean-sounding company lose its contract, and the
purchase re-awarded to a nice US-sounding company -- something to do
with forest animals, I forget -- that may have not been the lowest bidder,
and maybe not the 2nd-lowest either.
Anyway, we all know about the 4th estate. After all these
back-and-forths over a year or more they began a-sniffing and a-diggin and
discovered the original Korean-sounding company actually made its crane
someplace in upstate NY. And -- wouldn't you know it -- the American-sounding
forest animal imported its machines from Korea and the public coffers
were going to pay a bit of a premium for the privilige.
Shee-it. Another edict went out from that office and the 2nd contract was
cancelled and I'm sure the lawyers of all persuasions put in standing
orders for only imported champers.
I only hung around that neck of the woods for 10 y, so I'm not sure how
it all worked out. Or not.
Ain't going to happen because there is no raw 'uncorrupted' data.
-- george < email@example.com>
On Dec 7, 12:11 am, firstname.lastname@example.org wrote:
Reminds me of something completely unrelated to this but what the
In 1987 I was working on a cruise missile navigation system at Singer
Kearfott in beautiful but flooded Wayne NJ. The system involved a
ring laser gyro (RLG), effectively, a gyroscope based on light. The
end product involved producing an RLG subsystem for an Air Force fly-
off between us and two competitors, Raytheon and Sundstrand.
At the fly-off, our product worked like a charm, the Sundstrand
product never worked and the Raytheon product burst into flames. The
contract was awarded to Sundstrand. Sundstrand had built the previous
generation of RLGs for the Air Force.
About a year later Paul Bilzerian in an LBO sold the best parts of the
company to BAE and to an Asian sewing machine outfit and put the rest
of the company into the sewer. For all that hard work, Bilzerian
spent some r-and-r time time in solitude at the Leavenworth Hilton.
There isn't enough information to make that decision. Fx Motors could
be paying their USA employees close to minimum wage with little tax
benefit to the country as a whole.
I would prefer to have a value added tax to equalize the tax burden
of the two manufacturers and let me pick the vehicle that has the most
value for the buck.
When shopping for a replacement vehicle for my minivan, I wanted a
hybrid vehicle that was as close to minivan size as possible and had a
good mpg rating as well as safety and performance. I had never owned a
foreign made automobile. It boiled down to a choice between the Ford
Escape Hybrid and the Toyota Highlander hybrid. The Ford had a better
mpg rating and was slightly less expensive but the dealers weren't
willing to discount the price. So, I bought the THH and gained better
performance, towing capability, & safety. A VAT would have increased
the price premium enough to swing my choice to the FEH.
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