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Former Microsoft COO Bob Herbold on companies shifting jobs overseas to countries such as China.
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It is -- jumping ship on America the company is considered a -- shifting gears in its production plans.
Moving a lot of manufacturing at a Michigan and -- to China.
Former Microsoft CEO back up what does Bob -- -- what he makes of this.
They will.
I don't Reagan and in the middle of the bail out here that we ever envisioned that part of what we might be getting is is -- company skipping over -- China but what do you make of that first.
I think that any company has to look at the situation -- in terms of where to produce things.
And make decisions based on efficiency and effectiveness and in the case of the Jeep it's a hot product in China right now.
They love that product at selling extremely well so moving some of the production -- -- even all the production.
Of that product over to China could make a lot of sense.
From the standpoint of wages from the standpoint of the availability of engineers.
But thirdly it's quite possible and I've heard that what is being considered here is relationship with the -- -- automotive company.
One -- a tax free zone and China which means tickets each Chrysler could set up shop.
And one show.
Basically.
Be part of a tax free area and so that third advantages as a big tax advantage so.
Yeah but they haven't witnessed and I really you say it all makes perfect business sense.
But I mean to the president in in all of these events of that Romney has been -- you want to -- these jobs over to China here we have.
Bailed out auto companies.
Cool we were told you get this money you save American jobs and we literally are.
After all of that shipping deficits jobs data for all maybe the write an apparent big macro reasons.
But then to to to belittle Mitt Romney.
And the say that's that's what you're all about -- it this isn't about casting aspersions on Democrats are -- -- about.
If it was -- this way in the beginning that this was a potential.
I think people would have said no way -- now -- land album now that's what's happening.
What's a classic example and with all due respect President Obama obviously doesn't understand how multinational.
Company works.
There's a board of directors there's executives.
They are responsible to the shareholders to make wise decisions on how to run the operation.
And in fact if there's a cheaper opportunity a more effective opportunity.
They are legally bound to make that decision and -- -- To execute it it's not an issue of liking America are liking China or whatever that's.
-- I -- I think I think you're definitely see you gonna get down on the money does that a red or -- issue it's green it's all about making money and and and I -- I could see a fully for that.
That question has zero problem -- of this which is -- the political and back.
Now I can understand why polls in Michigan and Ohio and states that have benefited enormously.
From that bail -- Are so -- many of even those.
Whose jobs were saved in the bella are starting to get antsy and and and you would think and certainly in Michigan.
The president would be sitting on its -- point -- that state as it was coming -- did talk to you Bob is dead even.
You know if China were running this country what they do they see Detroit in a problem situation you know what they do -- They make Detroit a tax free zone.
So let me tell you in this -- the other 49 states would come running to Michigan and Detroit.
That's what China does so they're -- -- -- Tax free zone in China white and what is that what.
-- says -- try to there player in the Chinese get it on the basic essence of capitalism.
And we -- absolutely.
Absolutely.
Well all right now what all right so now we have.
Bob this trend that that could pick up steam here.
If other companies see the advantage of doing that's so no matter how much we jawbone about China one way or the other in Beverly would drawn.
Ought to China and the opportunities for companies there and making money there it's that are now right Mitt Romney has said that he would take a tougher stance.
With China than the president has I don't know about you -- I I did terribly in Republican and democratic administrations.
Alike I don't see a heck of a lot of difference.
In their policy toward China will what -- you -- changing anything at all what.
You know Romney -- in his life if it if it were to come to this.
I think you'd see more pressure on China to continue to open up the currency issue and that's probably the right thing to do.
I think you see more pressure on China in regard to.
Intellectual property laws and that would be welcome.
Worldwide that China.
Pay more attention to that they've improved but they've got a long way to go.
But thirdly I think -- see an administration that in fact understands.
Basic business concepts.
Which the majority of Washington DC does not right now.
Thus our comments a bit earlier but the fact is.
We need.
A group of politicians.
That want to realize that -- in competition with other countries in terms of jobs -- -- they have to get out there and compete.
And you don't sit there and dream up more regulations and more taxes for these companies you work with them.
Like the Swiss government does like the Singapore government does like the Chinese Government does.
And come up with ways to help those companies do business that's how you create jobs.
You know -- distance or just a personal order reaction when I see just demeanor.
And the approach in the campaign trouble president -- I don't think he likes business I don't mean to say that he.
Hates them all I just don't think in his gut this really he really.
Lights.
Business doesn't trust business and I think it comes out in his rhetoric about fat cats they -- -- paid airfares there leaving aside that the you know tough couple percent -- alliance -- taxes anyway 47% aren't paying any income taxes at all but invariably.
He he is is it's his.
His language that I think most takes -- certainly Wall Street guys I talk -- and that's to be expected I guess but increasingly.
Many of your corporate colleagues who just say hey enough is enough this is killing.
Yes well I agree in -- each of us is a victim of our our circumstances and what we've been through in life.
And there's a lot of people in Washington DC that that haven't Riordan that no real familiarity with what business is all about.
In my case I've been all about business which means I probably don't understand social workers the way I should okay.
So we're -- victim of our experiences but the fact is.
We have to run this country.
By having individuals be successful.
Which means they have a job they have a successful family because they can fund the family and the like.
And not enough attention is being paid to those basic economic principles that -- -- -- families to be successful.
You know you said that brilliantly and I'm very glad we had a little more time -- -- about the zoo is always -- worth it thank you my friend.
He said I will take care all right Barbara.
