Foxconn has been facing the pressure of rising wages in China for a several years. Last year's wave of employee suicide has forced it to move plants to poorer region in China and eventually it may run out of place to move inside China.
I question whether Governments should bend over backwards to satisfy the demands of these big firms. Assembling parts alone should not be seen as a triumph but sourcing a percentage of components locally is a good thing. You need to have a legacy for when Foxconn goes to the next cheap place....
Foxcon have been doing their manufacturing in China and have got used to the high quality of subsidiary support companies which provide crucial components and add to that the well oiled chinese export indutry, they would find it hard to get that level of comfort anywhere else, even US.
While I dont understand the logic of going to Brazil the expanding business and closer geographic proximity to US would make it an interesting opportunity.
I am not sure if Foxconn is justified in making crazy demands for tax breaks and other concession. May be for initial setup Brazilian government can give some tax concession but once its the plant is set Foxconn should pay taxes according to Brazil government rules.
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