This only makes logical sense. If a company sees an opportunity to grow and profit by doing it overseas, you bet your a$$ they're going to do it. Every company tries to find the niche first, when one does, many others will soon follow, because they see the benefits from doing it. That is there ticket to making many of the same products cheaper and more competitively priced. It is all about volume. Instead of selling 1 million of these widgets for U.S consumers @ a $1, why not make 1 billion for consumers in the U.S, India , China, etc for 95 cents. India is one the fastest growing econonmies in the scale of agriculture revolution. The have the worlds second largest tractor builder-Mahindra. It is rumored they will take over the No 1 position held by Deere.
Good point. You have to realize, this is now a global economy. You have Terex and Volvo selling heavy equipment all over the world, why not Mahindra?
Take a closer look at China and India.. twenty-five years ago, their economies were in the Stone Age, now they're worldwide market players. Why? Because US & EU companies went over there to sell to a virgin market.
In 1970, China had 600,000 million people, and how many had cars? Six? Eight? A few dozen people at the most? (I exaggerate, I know...) Now, they have a population of a billion and half the country has at least one auto. What are you supposed to do, build it here and ship it there? Or build it there and maximize your profit margin?
SouthEast Asia is next.. Vietnam, Laos, Cambodia, Burma..
dude.. anywhere they posses the skill set to make lenses for eyeglasses, they can develop a skilled workforce..
Think about all that goes into a high rise office building.. not just the concrete and steel, or the carpet and wall paper..
think about the light bulbs.. the desks, chairs, computers.. hell, calculators, pencils and paper clips..
why does stuff cost so much now?
Because you have a billion and a half more people using it now, than you did 25 years ago...