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Big businesses have moved to China after production costs here have risen after workers received better rights. In China, companies like Nike are making millions on the backs of abused workers. The Chinese government isn't really an issue there since they want to attract as many foreign companies as possible. How can the US government stop american companies from setting up production in foreign countries? What powers does the government have over corporations in general?
The US Companies will just go bankrupt. They wont be able to compete on a global market and foreign companies will produce the same exact products in China and sell them in the USA for a cheaper price. So you would essentially have to cut off all trade with china which would bankrupt the USA over night. The Government can't limit big corporations from outsourcing manufacturing jobs if they even hint at it many of them will entirely leave the US. I know if I owned a fortune 500 company and the US started to even TALK about this I would move the company to another Country. Trust me it's not hard to find a country that wants to bring a fortune 500 company into it's Economy. If you want to bring and keep manufacturing jobs to the USA again. You need to make the USA friendly to businesses again. It's not right now. Every single business deals with massive regulations from bureaucracies. In Saint Johnsbury the dry cleaning industry has been under constant attack from Environmental bureaucrats. about 7 years ago they made every single dry cleaner replace their boilers that costs any place between 30-80 thousand dollars depending on the size of the boiler. They just recently made every single dry cleaner in Saint Johnsbury replace their dry cleaning machines and banned perc. Never mind that the alternative solvents for cleaning don't clean as good and cost 3 times as much to buy and 4-5 times as much to use (cycle times are longer). A new dry cleaning machine costs any place from $75 thousand dollars to $250 thousand dollars. Now factor in the insane cost of labor. It's about 25-30% higher then what the employees get paid. Businesses have to make tax contributions to social security medicaid medicare and federal with holding even state income tax. They have to pay for your unemployment benefits (which cost around 3-4% of their gross payroll) but that rate depends on how many claims the business has had against it. Can't forget the insurances they are required to provide such as workers compensation and a general liability policy. Now factor in the fact that nearly 2/3 of all businesses in the US get sued at some point or another. It doesn't matter if the business wins the business still loses. Representation is not cheap and can cost hundreds of thousands of dollar even millions. this all leads to increased production costs. The companies want to be able to compete in a global economy and make money out side of the USA. So you can't blame them for wanting competitive production costs.
The question implies the government "should" control corporate actions. The very beginnings of "State run factories" not a good thing. 2nd, and most pointedly, The government does control outsourcing to a huge extent. I am an American with a manufacturing plant in China. Why China? Many reasons. All are government policies pushing us to go to China and to remain there. If we produce in China, the FDA will quickly grant us approval for less than $600.00 in fees and complete everything in 10 days or less. If we want to produce the same items with the same materials here in the USA and hire American workers, FDA is a long, long process and costly. Not to mention OSHA, city,county,state,federal inspections, forms,regulations,taxes ect. Nearly 64% of America's imports from China are manufactured by American companies in China. Looking at Ernest's answer (Very good answer) amazing those in position to make it happen just won't.
The government punishes the corporations with taxes and onerous regulations for producing in this country. Other countries tax less and have less silly laws. Unions are also less powerful, making the cost of labor less. The world market is based on free enterprise. Corporations will go where they get the cheapest cost of producing, including labor, laws, taxes, and delivery to clients. So the government needs to take over the other countries and make them pay higher taxes and have a LOT more regulations so corporations won't want to go there either.
You can use the Irish method of reducing taxes very low and not making companies pay for healthcare and have the government spend money on education all paid for with taxes on individuals. Or you can use the German method. It will take me a long time to explain that one but it works and has created the 4th largest economy in the world with a small population. In a nutshell the German method is having everybody in the country work for the good of Germany. Neither would work perfectly here. Ireland could attract one very large employer, Intel, and become very rich. While Germany would require a mindset change.
If you do some intense research, you'll discover that most companies that "outsource", aren't selling those products here in the U.S., they're marketing those products to the countries that they're outsourcing in. It's a global world, whether we like it or not. The only way to remain competitive is to outsource. I agree with Donald Trump, btw. We have given foreign competitors unfair advantages.
I think most Chinese that work in these factories are thankful to have a job rather than seeing themselves as being abused. If Big Brother in Washington really wants to keep jobs at home, they need to have it make economic sense. Cut taxes and regulations and limit the power of unions would be a good start. Corporate America would prefer to keep it t home, but not when it hits there bottom line.
By imposing import tariffs when they bring the finished products back into the country that will make it cheaper to make products here. Its not like they're passing the savings on to us. They're just paying 1/10 the labor cost and putting the rest into their collective pockets.
I think the only control the goverment has over anything is by taxing it. If they tax them high enough that outsourcing to foreign countries prove to not be money saving anymore then i believe they would stop.
It's only a matter of time before Chinese workers demand rights too. And how is Yum Brands, owners of KFC, going to like it when the Chinese boot them out of China in retaliation for US tarriffs? Think Yum will happily give up billions in income?
The corporations are the government. Or as near as makes no difference.