Is Coca Cola CEO Muhtar Kent's statement it's easier to do business in China and Brazil than USA a wake-up call for USA?
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"They’re learning very fast, these countries. In the west, we’re forgetting what really worked 20 years ago. In China and other markets around the world, you see the kind of attention to detail about how business works and how business creates employment. Coke recently announced huge investments in China and other emerging markets. Meanwhile it threatened to cancel an investment in France when the government proposed a new soda tax. http://articles.businessinsider.com/2011-09-26/markets/30
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Answer:
Major corporations have been outsourcing for years. The only wake up call it should be is to stop giving these business tax breaks on their profit when they take jobs over seas. I literally cannot unsderstand why people think they should continue to get tax breaks when they do not create and jobs here with that money. Eleven years we have been waiting for the "job creation" and the "trickle down". We are still waiting. Time to stop it.
charlie95 at Amazon Askville Visit the source
Other answers
I am intrigued that the new construction and shipping costs yet are that easily overcome by the lower wages. And there could be other factors, such as regulation. We should be careful, and I agree we shouldn't buy ANY of these foreign-made products because few to none of them have any regulations on age of worker, hours worked, wages paid, whether wages are paid, resources used, resources wasted, disposal of waste, who breathes and lives with disposed waste, how long disposed waste lingers, nor even how soon disposed waste makes its way here. For our own protection, and the protection of the planet, we should refuse to buy any foreign-made products unless we KNOW these safeguards were included in their manufacture.
danielpauldavis
Two totally different markets. The CEO of Coke ought to know better. The US is still a labor-neutral to labor-protective market. France is a labor-protective market. China is a labor-exploitative market. Still, there are plenty of people who drink Coca Cola in the US, so it pays for Coke to stay deeply invested here--or else lose its narrow lead over Pepsi in this large market. China is a growing consumer market for Coke. But there's a huge risk in doing business there. The problem there is corporate espionage and outright trade infringement which is often tacitly encouraged by the authorities. Within a few years of manufacturing in China, Coke will find that its "secret formula" for Coke is not so secret. It will find knock-off soda products start to appear in China and around the world, like in Argentina and other third world countries whose sad finances are making them open their doors wide open to counterfeit Chinese goods.
alltogethernow
Not at all. If Coca Cola thinks they can do better and make more money there, without the US consumer, he's free to move his company and we'll do without it's product. Of it's 35.1 Billion in sales, 42% came from the US, and without the US, it would never have gotten as large as it has. Go to China, and get 10 cents for a bottle of Coke and see how much those profits add up. Screw Coke and every company that thinks this country is too hard or taxes too much. Be gone - we don't need you, because US companies will easily and quickly replace you.
Schelli
Yes these countries are indeed learning very fast what's good for business. It takes a little longer to appreciate that what's good for Coca Cola isn't necessarily beneficial for the citizens of Brazil or China. Threatened to cancel an investment? Why not threaten to cancel sales? That ought to show em. Of course corporations are going to rush to underregulated emerging markets, with predictable results. The weekly recall of Chinese products exported to the United States coupled with endless scandals involving commodities meant for domestic consumption within China should be instructive to those lauding the glories of unfettered capitalism. It will be interesting to sample Chinese and Brazilian opinions 20 years hence on the economic benefits of for instance the rapidly expanding tobacco industry.
stanleybmanly
As Turbo alludes to - the US needs to start applying stiff penalties to US corporations that move their businesses off shore; if for no other reason than to raise revenue to help offset what's needed to help support those people they screw.
Schelli
It's one of those catch-22 issues. if he is making soda in china to sell in china, that's hard to argue with. but if he's making soda in china to sell over here - we can buy from someone else.
TheLightWorks
As I said to danielpauldavis, I like your answer! It's up to us: buy local, buy American made. We make the choices in what we buy - we need to make better choices.........and to tell retailers what we want. I recently saw this sign on the main traffic artery of a town 20 miles from mine: Save local jobs - Shop at home. That saves a few jobs in retail stores.........but what about the manufacturing plants that have closed? What about those jobs?
charlie95
the wake up call that should be given is to stop buying their products if they can't be bothered to produce what they want to sell to us locally.
TheLightWorks
That's a much more enlightened approach than you'll get from the U.S. chamber of commerce.
stanleybmanly
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