Sunday, August 23, 2015

What's better for US economy: A foreign car made in the USA, or an American car that's imported?


This is an interesting topic, because Toyota makes most of their parts in the US (75%) for most cars, and I believe all are assembled here. American brands such as Ford and GM on the other hand mostly contain parts from Mexico and Canada (less than 75% US parts), and many of their vehicles are now assembled in Mexico and Canada.

Some people say that Toyota is better for the US economy, and I agree. People say that since most the parts are made here and the vehicles are assembled here, Toyota creates many jobs, and a lot of the money stays in the country. Many Americans can also invest in Toyota stock, as with all other car companies.

The counter argument though is that the profits of Toyota are leaving and going overseas, while Ford and GM stay here. People also say that most of the vehicle development of Toyota happens in Japan, while Ford and GM stay here, so people may lose jobs there.

What's better for the US economy?

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