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It could in the event of a trade war, which seems increasingly likely for many countries. Lack of local manufacturing isn't really important in a world of glob
by raesene9 8y ago
It could in the event of a trade war, which seems increasingly likely for many countries.
Lack of local manufacturing isn't really important in a world of global commerce, but when governments start using their manufacturing as a weapon in dimplomatic disputes it becomes important.
- GordonS 8y agoYou could argue that about literally anything though, from clothes to bananas - but it's simply not practical for every country to manufacture and produce everything it needs. Also, clothing and shoes (mentioned in the comment I responded to) are easy to produce without massive capital outlay, and the raw materials are readily available from several countries. I think the local manufacturing argument makes more sense with regard to items that are seen as critical, and which would be impractical to obtain from elsewhere - such as motherboards, processors and the like.
- raesene9 8y agothere's a trade-off for sure, but at the moment some countries make a very small percentage of their goods locally, which leaves them more vulnerable to tariffs in a trade war. Whilst raw materials could be easily available, there is a ramp-up time to move any industry locally, both in terms of creating the manufacturing infrastructure, and in terms of acquiring the skills needed locally.