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China may make the most money by doing the manufacturing, but we also make the most money by letting China do the manufacturing. This is a basic tenet of econom
by CWuestefeld 17y ago
China may make the most money by doing the manufacturing, but we also make the most money by letting China do the manufacturing. This is a basic tenet of economics called Comparative Advantage (http://en.wikipedia.org/wiki/Comparative_advantage http://en.wikipedia.org/wiki/Comparative_advantage ).
(I note that in the presence of market-distorting factors like tariffs, comparative advantage becomes much muddier)