Quote:
Originally Posted by Paul Markham
Tell us where I'm wrong.
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You are correct with a lot of your regurgitated facts, however, you are leaving out the small minor part of the cost of doing business in the US. The taxes, federal and state, the regulations and restrictions, the restrictions on mining, possession of, the fees and restitutions for obtaining the raw materials needed and to 'help' repair the local environments from where they were obtained. And that's just the government's greedy hands out.
Then come the workplace and the employees. You need a place to make your goods or to work like an office depending on your business. This place will need annual and often inspections along with things like electricity, phone service, the Internet, and many other things, again based on the type of business. And the employees, labor laws, unions and more. You can't employ children and no slave labor wages along with restrictions on minimum pay and maximum hrs work. There are no workers here for pennies on the dollar. Plus medical insurance, unemployment insurance and more.
Don't forget the legal fees... I don't think anything needs to be explained here unless you aren't familiar with the US legal system and the millions of frivolous lawsuits filed daily.
I'm sure there are many more business expenses for US-based operations, but all of the above should help to point you in the right direction on things you have no clue about in reality starting with the difference between 20% profit and 700% profit.