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Thread: Twinkie for your thoughts
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11-22-2012, 02:16 AM #36
I agree.
Here are some thoughts that I have had for a while. My numbers have no backing but I think are reasonable, and I am using imaginary countries and wages because I realize we live in a global economy.
The raw product is produced in country X and then shipped halfway around the world to country Y. The worker in country Y makes 10,00 widgets an hour for a wage of 1 Z per hour. They then ship it back to country X. The worker in the same industry in country X makes 30 Z per hour and makes the same 10,00 widgets per hour. The labor cost per widget is 30 times more but I can't see where the shipping cost doesn't eat up that difference since the cost of labor per widget isn't that big of a difference.
Obviously I am missing something. Show me the error in my thinking.