Fiscal Cliff
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06-12-2012, 09:08 PM
RE: Fiscal Cliff
If nothing else Free trade wastes huge amounts of resources to exploit cheap labor.

Resources shipped to some poor country.
Coal is shipped in to power manufacturing plants.
product is produced
product is shipped to us
Product is sent from coast to distribution center
product is sent from distribution center stores
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06-12-2012, 09:58 PM
RE: Fiscal Cliff
(06-12-2012 09:08 PM)Diablo Wrote:  If nothing else Free trade wastes huge amounts of resources to exploit cheap labor.

Resources shipped to some poor country.

Which then makes product cheap. That's a perfectly valid ethical objection and I happen to agree with it. ... Got no idea what to do about it, though.

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06-12-2012, 11:16 PM
RE: Fiscal Cliff
(06-12-2012 08:45 PM)GirlyMan Wrote:  
(05-12-2012 11:45 PM)earmuffs Wrote:  what math?

Fucking MuffinHead. You aspire to be some big time import-export capitalist and you don't realize you better be able to hold a profit-loss statement in one hand and a balance sheet in the other and reconcile them. What math? Fuckin' MuffinHead.
I'm doing a minor in accounting, I am well aware of balance sheets and profit-loss statements.

Quote:If nothing else Free trade wastes huge amounts of resources to exploit cheap labor.



Resources shipped to some poor country.

Coal is shipped in to power manufacturing plants.

product is produced

product is shipped to us

Product is sent from coast to distribution center

product is sent from distribution center stores

Well yes and no.
It depends on the product.

Also, it's not always produced overseas because of cheap labor. Quality is one factor. For example, here we have pretty decent quality diary products (it's our biggest export) so because our beef is better then say UK beef we ship our beef over there and they eat it up (literally).
It doesn't mean we can produce beef cheaper then the Uk (we probably do, we probably don't), it just means we produce better beef.
There are several reasons why goods are shipped all around the world, cheap labor is not the only factor.



As another example of free trade and economics 101, I seen and I believe it was mentioned in this thread, that Apple is bringing parts of their production back to the US.
This is all part of it, it's all about customer demand. ie: Customer want cheaper goods so things are outsourced to China (cheaper labor). But customer demand shifts, quality is a factor and China can't produce as high a quality product as if it was made in the US (well they could, but they don't which is the point) and so goods are now made in US.

If you take the car industry for example. That is a good example. Price was a deciding factor, Japan was able to produce cars much cheaper then the US and so Japanese car demand skyrocketed while US demand fell.
The difference is though that the Japanese (and especially the South Koreans at the moment actually) understand the importance of quality and so Japanese cars are still huge sellers (by far the biggest sellers here at least).

It's about customer demand and locating to suit those demands, whether it's "home grown", "affordable", "quality" etc.. it's all a factor.

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07-12-2012, 06:44 PM
RE: Fiscal Cliff
bump.

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