Re: Is US becoming cheaper?
Welcome to the brave new world of “legal” global trade. It is good to see Indian companies following the footsteps of Japanese, and Europeans. I hope Pakistanis and Pakistani Americans follow the same path.
International corporations do not set up offices in US purely on the basis of their cost per employee. There are many other factors. A small sample is given below for a reference.
- US provides one of the most corporate friendly work force in the world. Why it is so?
a) US work force has the longest working hours per week
b) Fewer vacations than their European counterparts
c) They are talented and innovative
-
US provides some of the most corporate friendly laws (federal and state laws to establish or end a corporation).
-
Tax benefits.
-
US is the innovation leader in the world
-
Much closer to the clients / users
-
Once a corporation is established in the USA, it can compete for more contracts that may not be available to a purely off shore entity.
BMW has recently fired bunch of their German employees and they are moving some of the operations to US.
These were but a few examples. There are many more things to consider for a corporation before it moves to USA.