Originally Posted by jragosta
Now we'll get to hear people complaining that wage rates in Brazil are lower than the US and Apple is exploiting those poor Brazilians......
Only stupid or ignorant people would say that, usually the same people who think Brazil speaks Spanish, has Buenos Aires as its capital or is composed of indigenous "latinos" (whatever that term means).
Brazil, a traditional Western nation with overwhelmingly European roots, has one of the highest labor costs and an extremely rigid protection net for workers (it's much safer, legally, to be an employee in Brazil than in the US); this is why you don't see "Made in Brazil" in every product out there.
Obviously, AVERAGE salary levels are still lower than in the US or most of Western Europe; but they are FAR above anything like African countries, China or India - however, it must be noted that management- and C-level remuneration in Brazil is already the highest in the world, due to the attractiveness of that market, insufficient supply of extremely-skilled labor and the overall positive situation of the economy.
So Foxconn is going to Brazil because of three main reasons:
- Favorable tax incentives meant to lower the stupidly-high prices of electronics in Brazil (legacy of import substitution, high-tariff industrial policies and a lack of transparency on the part of companies there when it comes to pricing);
- Creation of an alternative shipping route to the US, as well as booming markets in Latin America and Africa;
- In order to cater to Brazil's gigantic market, its majoritary middle class and the increasing demand for Apple products, as already reported by Tim Cook.