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DanTex

(20,709 posts)
9. First of all, no, those aren't examples of free movement of capital.
Mon Jun 1, 2015, 11:40 AM
Jun 2015

They are simply examples of production being moved to where it is cheapest. To that extent, whether Americans or Vietnamese people own the factories where production is outsourced to is irrelevant.

These two examples fit into the comparative advantage framework just as much as the "good" example from the OP, where one country is better at producing bananas, and the other is better at producing fertilizer. Because, in that example, banana workers in country A will end up losing their jobs, as will fertilizer plant workers in country B. And again, the people who own the fertilizer plants or banana plantations don't affect the argument.

Anytime one country has a comparative advantage, the only way this advantage will actually realize any benefits is if that country produces more goods in the advantageous category. Which necessarily means building more plants and hiring more people to produce those goods.

agreed. "Corporate Rights" agreement. also "Corporate Welfare" magical thyme Jun 2015 #1
It totally sucks Art_from_Ark Jun 2015 #3
The big problem with this article is that it picks bad examples: DanTex Jun 2015 #2
No, it is not. rogerashton Jun 2015 #8
First of all, no, those aren't examples of free movement of capital. DanTex Jun 2015 #9
You said rogerashton Jun 2015 #10
I said "Allowing American companies to move jobs/production". DanTex Jun 2015 #12
Keep fudging. rogerashton Jun 2015 #13
How am I "fudging"? DanTex Jun 2015 #15
In the theory of international trade, rogerashton Jun 2015 #18
Yes, that's the macroeconomic definition of capital, and while it is used that way in DanTex Jun 2015 #19
You are getting a little frantic, here. rogerashton Jun 2015 #23
Frantic, what? This doesn't need to get personal, does it? DanTex Jun 2015 #24
K&R 99Forever Jun 2015 #4
So you have read something that doesn't even exist yet? Seer? Cryptoad Jun 2015 #5
1. enough has been leaked for us to see it's no good. The ISDS chapter alone is enough. magical thyme Jun 2015 #6
80% of the GDP covered by the TPP is already covered by "free trade" agreements. jeff47 Jun 2015 #11
It's a transference of power from nation states to corporations. Dont call me Shirley Jun 2015 #7
Exactly, but those that worship money are blind to the harm it will do. Rex Jun 2015 #14
"Free trade" is actually privatize profits - socialize costs/losses... Dont call me Shirley Jun 2015 #20
Basically its the crowing of corporations d_legendary1 Jun 2015 #16
Only in the sense that the EU Charter and the US Constitution were 'free trade agreements'. pampango Jun 2015 #17
This works in the US because we Are ONE nation, tpp involves many sovereign nations with Dont call me Shirley Jun 2015 #21
The EU is composed of many nations but it was created along "FDR" principles - strong unions, pampango Jun 2015 #22
The EU generally lifted all boats. The TPP is created only to lift the yachts of the rich... Dont call me Shirley Jun 2015 #25
Do we export anything anymore? xfundy Jun 2015 #26
Bombs, guns, mortars, tanks, and factory equipment once used here Elwood P Dowd Jun 2015 #28
Accordling to Wikipedia the type is trade agreement Thinkingabout Jun 2015 #27
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