Question

Why do you think it is so important for German and Japanese auto makers to manufacture more products in the united states? Should American companies function in a similar fashion by producing more outside the US

Answer 1

It will helps in reduced cost of vechicles in US . Apart from this , there will be no supply related issues or any services loopholes can be encountered by the American people. Such manufacturing activities will create more jobs to Americans. Even , government will get huge amount of tax collection through different types of activities related to supply, production and distribution of cars in USA and other export from US lands.

Yes , if American companies will produce in a different countries then they might take cost advantage by getting cheaper raw materials and reduced cost of labor . Even , many emerging economies are offering tax holidays , clusters of manufacturing, supporting related industries nearby the abundant raw or natural resources etc.

For example, If , American oil refineries of crude petroleum oils will set their plants in Venezuela then definitely they will reduce their cost due to huge extracting of such materials and they can continuously supply the same to whole world.