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> That is exactly what comparative advantage implies. The US cannot be great at Silicon Valley and Detroit (well, the manufacturing bits) at once. Why not? On
by tivert 8y ago
> That is exactly what comparative advantage implies. The US cannot be great at Silicon Valley and Detroit (well, the manufacturing bits) at once.
Why not? On another continent, Silicon Valley and Detroit would be in entirely different countries.
Labor arbitrage doesn't reflect a real comparative advantage.
- village-idiot 8y agoDistance doesn’t seem to matter as much as culture, government, and monetary policy. Silicon Valley and Detroit share a currency, a government, and a population.