Outsourcing increases profit, how do we make it unprofitable?

Question

The fact remains we are in a global economy, and need to sell our products overseas. The average worker in china can little afford goods produced in the U.S. Companies wanting to sell their goods in China, can only do so by producing the product in China, or someplace with even lower costs of production. 

Would placing tariffs on the goods of corporations based in the U.S. fix this problem?
Since some corporations have chosen to incorporate in places such as the Bahamas should we also place tariffs on their goods and services since they are not paying corporate taxes. Yet they benefit from the U.S. consumer market?

Anonymous · Accepted Answer

End the tax breaks for US companies unless they pay workers a significant wage or buy from local sources that do.

I&#39;m the Moon · Answer

Tariffs would help but not for long. Here's why:

Whether to use tariffs or not is like a prisoners dilemma situation (http://en.wikipedia.org/wiki/Prisoner%27s_dilemma). You will be better off with them than without them so long as no other country has tariffs. However, as soon as others impose them and all countries have them then it is the case that every country is worse of than they would have been if no one had tariffs.

Hope that makes sense. If it doesn't read up on prisoners dilemma.

tom · Answer

Lets look at taxes and regulations, #1 reason to incorporate overseas.  Good how do you fix #1 to help the US?

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Outsourcing increases profit, how do we make it unprofitable?

3 Answers