Finally the Democrats Get Something Good Done

ucsd_ucla_dad
Thu, 20 Dec 2007 17:42:38 +0000

tommybill:

It’s clear that industry tends to move to where operational costs are lower be it from the USA to China or Mexico, from Japan to Taiwan, or from Taiwan to China. It even happens within the USA with industries moving from California to Arizona due to regulations and from Michigan to the southeast due to lower costs. The only reason the Maquiladora industries exist just south of the border near here are because of reduced labor costs and reduced regulatory costs. The only reason China is now the manufacturer of almost everything is because it’s cheaper to produce there. I’m sure you could come up with many other examples yourself.

As fundingfather stated, if costs increase significantly in the USA due to additional regulations imposed but other countries/locations don’t have the same impositions and therefore have substantially less costs of doing business, then the industries are likely to tend to migrate to those locations.