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Question about outsourcing overseas....Does a manufacturing company have to have factory in the U.S. before it can move overseas? Is there a benefit to a company having one open for a few years then shutting down to outsource. Hope someone more knowledgeable about this can answer my question. Not really a political question but was my best option for a category

Shefree 5 Nov 3
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No. Although some will keep one of their corporate headquarters (note, I said one of - multiheaded companies for tax breaks - especially if scattered world wide)

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Many companies have no factory at all. They just contract with somebody else for their production. These days it is easy to find factories overseas to produce almost anything.

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Manufacturing what? For electronics no & absolutely not. Most electronics are made overseas by contract manufacturers (CM). There is no need to have your own factory. Setting up a plant for high volume production is extremely expensive and it takes time to work out all the kinks. Samsung has their own plants but Apple uses contract manufacturers (CMs).

For Apple, product design is centered in California, most component manufacturing and assembly is done in Asia. Software is designed and coded in the USA as far as I know and typically testing and support is a combination of on and off-shore.

All companies that produce physical goods may outsource components to CMs. Cars, for example, have components that are sourced globally. So an American car can be assembled in the USA, Canada, or Mexico and components come from all over the world.

I hope this helps.

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No they don’t. It is easy to outsource without having a business in your own country. You can easily google it.

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