I know I don't understand everything involved, so I'm asking for
someone else who does. When we have citizens of Mexico coming to the U.S.
illegally to work for low wages, why do we not have more manufacturing being
outsourced to Mexico rather than China? I do occasionally see "hecho en
Mexico" labels on clothing. Why is there not more of it? I'm guessing
wages in Mexico fall somewhere between those in China and the U.S.
Wouldn't shipping costs from Mexico be less than from China? It just seems
at first glance that the difference between manufacturing in Mexico and doing so
in China would be negligible. And if that is truly the case, we would address
two issues--the other being unwanted illegal immigration--at the same time.
I have an American friend who was in the middle of constructing his business in
Mexico when he had to abandon the project because so many people were being
murdered from the drug wars. That's one reason why I would never open a
business in Mexico. Secondly, I also had a bad shipment of clothing
come from China. It's really best to manufacture here in the USA and give
our legal citizens good-paying jobs. So what if we have to raise the cost of the
product a little to cover costs. We should be glad to pay the money to keep our
American citizens employed!
@JT4Mexico is actually too expensive for most American companies
(U.S. companies used to manufacture there 20 to 30 years ago), so China, despite
its distance and communist government, is actually more economical. Though that
is changing, so the new cheap place to manufacture is Bangladesh (note the
recent clothing factory disasters that is now forcing the manufacturers to
ensure worker safety -- thus, the costs there are likely to rise and force
companies to move on). I read an article recently that Africa is
the next new frontier for cheap labor -- only the governments are not stable
enough for most corporations to make the economics and risk work.The
one saving grace that may bring companies back to America is the cost of energy.
As shipping costs continue to escalate due to high oil prices, it may get
cheaper and more convenient to manufacture at home (or near consumers). The
problem with working in America is that workers expect rights and safety, and
the environmental regulations are too high. Much easier to pollute in China and
southeast Asia. If energy prices fall, however, expect more off-shoring for
I hope the conditions and virtual slavery conditions in these countries continue
to be exposed for what they are. Some international regulations and treaties
could go some way to reduce the extreme poverty and suffering endured by the