eli5 how it’s cheaper to manufacture goods in other countries and have them imported back to north america?

Question

I get it’s the poor pay for labor but what about transportation and materials?

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Answer 1

Material and wages are the 2 most expensive things of running a business.

So when you need hundreds of people to run the business a place where the wage is $1 an hour is much better than $15 an hour.

On top of that most of the countries that it’s much cheaper have less regulations for things like pollution or safety.

In the us. OSHA and the EPA and minimum wage laws set the floor in which companies can act.