11/27/12

We watched more of the movie today about China and how it is capitalism. We did a lot of math. We realized that by the motor company moving to China,they saved about ten million dollars a year. They are able to do so because in the USA, the workers were making about $11 an hour and in China, they can pay people about a dollar per day. Within the period of a year they save over ten million dollars. They are able to keep the prices in America low because of all the money they are saving in China. Even with the shipping from China to America, the motor company is saving money enabling them to sell the small motors at a low price. Outsourcing is how things are cheaper to make in one country than other, so the company moves to the cheaper country to produce the product.