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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory
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To: RealMuLan who wrote (2048)11/11/2003 7:18:47 PM
From: BubbaFred  Read Replies (1) of 110194
 
The cost components of goods sold in stores: In the case of Nike shoes, the material and manufacturing labor is at most 10% (most likely 5% to 8%), and the rest 90+% takes place in the US for transportation, distribution, insurance, advertising, legal fees, retailers, overhead management salaries, CEO and company officers' compensations, etc., plus profit to distribute to shareholders.

That's a lot more jobs in the US.

I think it's also cheaper for the goods to be made in China because there is smaller initial taxes for the raw material. In the US, the raw materials would have been taxed several times as they move from supplier to distributor to factory, plus transportation, insurance and legal costs of the components before they arrive to be assembled at the factory. I read somewhere that about 5- to 10% of the price of any item sold in the US is to cover legal cost.
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