Actual quote by a businessman who deals in meat production:
http://www.economist.com/node/21528978
As it happens, the cost advantage is shifting towards the firm’s rich-world operations. The strong real makes it more expensive to export from Brazil and the weak dollar is a boon to the American arm. America has other advantages, too. Taxes are simpler and the jobs market is much slacker than in Brazil. “There are more people available who have the right skills and are well-educated,” says Mr Batista.
Less complex taxes, check.
Better job market, check.
Favorable currency, check.
Better cost of business, check.
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Right, Americans are prostrate slaves who will take any abuse and recoil in horror and supplication when a boss whips out the picture of the Indian guy who could take his place tomorrow for 1/10th the pay and work 100+ hours a week while licking the toilets clean during his 5 minute lunch break.
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They did a piece in Sao Paulo, where they added up the taxes a company would owe if they paid honestly. It was 167% of gross proceeds. So, uh, yeah. They had some extraordinary red tape.
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pkennedy says
And don't forget payments to dishonest parties, i.e. bribes.