This discussion about the different reels and where manufacturing takes place is a classic example of~~ where someone with a Doctorate in Economics and the guy who own a Greeting Card Store on the corner of Main and Center St. both have differing opinions where both opinions are Equally Valid.

Within the last 6 months almost all of the car manufacturers, GM, Chrysler, Toyota, Honda have had major recalls(defects) and within the last month Ford has been busted for exaggerated EPA fuel economy(mpg) claims where their original claims were on average 15% higher than what has been proven to be a more accurate EPA mpg estimate(false advertising) for the vehicle models involved.

American Companies who have some their products manufactured overseas and sell those products overseas do not pay income taxes on those profits from those sales until that profit(money) is brought back into the country(US). The import duties if any are passed on to the end consumer!

Meanwhile a third company purchases those products manufactured overseas in an overseas market place (Hong Kong) and imports those products to the US and sells them at a much cheaper price than what a company who manufactures a like product in the US can sell their product.

The reason is simply because there is higher wage base in the US and the tax on the profits raises the cost to do business. There are 3 losers in that situation, the company who would have manufactured those products in this country, the consumers who would have bought those products, and the American workers who would have made those products!