Why not? If there are 3 American companies with similar costs, would all of them just say “well, the price is the price?” Or would there eventually be one who realizes they can take more market share from the Chinese companies by undercutting them?
Why not? If there are 3 American companies with similar costs, would all of them just say “well, the price is the price?” Or would there eventually be one who realizes they can take more market share from the Chinese companies by undercutting them?
It was probably incorrect to say never, and there is another reply to me mentioning price elasticity which applies here for sure.
> eventually be one who realizes they can take more market share from the Chinese
Yes, on a longer timeline that is possible but in the short to medium term, it doesn't seem realistic for domestic producers to undercut and make profit. Initially you're building factories, refining processes, training workers, etc. which requires capital and investment.
Though, I can’t speak for them, and my opinions on reducing the outsourcing to countries who largely disregard the environment and human rights, are my opinions regardless of their motivations