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Originally Posted by fishbones
I see you're at it again.  You originally stated that CAT equipment is most likely being used at large Chinese construction projects. I pointed out you are wrong. Then you started squirming around trying to change your original statement because you looked foolish. Now you start saying I "lake" fundamentals of how a global manufacturing business operates. You're quite wrong again. |
The initial remarks were if global expansion benefited US business...and as I've indicated it certainly does. Swap "most likely" with "possibly" and your argument vanishes because you hadn't made a single point to refute my claim.
You still haven't by the way.
I do like your assertion that the Chinese only buy Chinese equipment even though CAT has over a half dozen plants in country...an investment strategy to capture Chinese market share
What do you think all those people are doing?
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I'll ask one simple question that I would like a straight forward, yes or no answer without the typical Spence circular logic. Would the 8,000 CAT manufacturing jobs currently in China help the people of Peoria if they were brought back home?
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To answer that question you'd have to assess if the company could afford to hire skilled workers, absorb increased material, shipping and support costs and be responsive to local markets and competitive pressures.
..while still turning a profit.
The answer is likely not, otherwise they would have already done it.
Additionally, without a Chinese manufacturing presence do you think their government would have any incentive to give us favorable trade conditions or would Chinese investors have much of any incentive to award contracts to foreign suppliers?
The answer again is likely not.
Yes, some companies do go overseas for cheaper labor or to avoid regulatory pressure, but for many global manufactures it's a growth strategy that would be impossible given the logistical and political challenges of operating from afar.
Bones, please keep pounding on that one word, in this argument it's really about all you've got
-spence