2 ms·
A lot depends on the definition of "my country" are you talking the exporter or importer? You seem to be implying the exporter country. In that case GDP will
by VLM 10y ago
A lot depends on the definition of "my country" are you talking the exporter or importer? You seem to be implying the exporter country. In that case GDP will drop.
Competition means the price you charge the importer has to drop by "something" otherwise your competitors (assuming you haven't used the .gov to outlaw competition) will undercut you. Unless you use .gov or "something" to prevent competitors from installing the same, or even newer better robots.
Surely as per efficient market hypothesis the employees working there were already at their best possible job over a long term average over a large group of people, like an entire factory. So an external force eliminating those jobs mean in an efficient market they'll by definition be working less well matched to their abilities jobs. This ripples thru the economy see anecdotes about aerospace engineers driving taxi and so on. Whoops taxi driving jobs are going away too. So society as a whole will be less productive, have less revenue, have an inferior match of their abilities to their jobs. This will further depress the GDP.
Traditional income inequality models indicate the marginal use of a dollar / yuan is much lower for small higher income brackets. Not just the wealthy CEO but say, engineers. So the impact on the greater economy of taking away 1000 line jobs is much higher than taking away 1000 line jobs equivalent out of the CEO's bonus. This is not seen as overly controversial, obviously the velocity of any given yuan is much faster for a poor dude than a rich dude.
Finally there's the multiplier effect where productive jobs that generated 1 yuan or whatever also generated as a side effect service transactions of 1.5 or 3 or 10 yuan per productively generated yuan. Obviously the real estate agent won't be selling homes to the now unemployed people which has downstream effects like the commissioned mortgage broker and commissioned bank reps all the way down to title registration won't get those service dollars, er, yuans.
There seems to be no reason to expect the GDP to increase or stay the same. There is a tragedy of the commons aspect where every individual benefits individually, but society suffers. Its much like dumping industrial waste into parks, for example.