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if you want to see an example of what this looks like, check out brazil - they have very steep import taxes on foreign produced goods, and the result is that ye
by notatoad 10y ago
if you want to see an example of what this looks like, check out brazil - they have very steep import taxes on foreign produced goods, and the result is that yes, they do manage to attract some local manufacturing, but whether things are made locally or they pay the import tax the result is the same: consumer goods cost 3-4x what they do in the rest of the world.
- Jtsummers 10y agoSee also Argentina. They've brought in lots of manufacturing to their country, but the high costs on imports has a significant and negative impact on the people. This is also why many middle class Argentines do a lot of shopping abroad, now that the taxing on bringing things back through customs have been relaxed. Which, in turn, will have a negative impact on the economy: less local shopping means local retail (local to the nation, not necessarily "local") will be hurt.
- jlarocco 10y agoThere's more to life than cheap consumer goods, though. Brazil isn't doing too bad, and they have the 7th largest economy in the world, and perks like universal free healthcare. Hard to say for sure if import taxes and more expensive consumer goods are hurting more than the increased number of jobs are helping.