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Competitiveness is very important to global companies. Other than avoiding tariffs, what competitive advantages might a U.S. company gain by returning production to the U.S.? What competitive pressures prevent most from returning even with the punitive tariffs in place?

2 Answers

  • 2 months ago

    Punitive tariffs are one of the pressures that prevents companies from returning to the U.S.  For example, the punitive tariffs on steel and aluminum made it too expensive for Harley to keep as much of its manufacturing here, so it moved some of it elsewhere.

    Another competitive pressure is the workforce.  Outside the U.S., companies can hire workers whom they can't hire in the U.S., because the workers can't get visas to come work here legally.  The companies are prevented from returning by the government's unwillingness to give visas to the workers that the companies need.

  • 2 months ago

    Advantages:  Marketing 'American Made'; Reduced shipping costs

    Disadvantages:  Wages; High taxes; More environmental regulations.

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