3 ms·
well, the other thing to consider is whether China is basically trying to do what Walmart did to it's competitors. If you can undercut competition to the point
by knowtheory 16y ago
well, the other thing to consider is whether China is basically trying to do what Walmart did to it's competitors.
If you can undercut competition to the point where your competitors drop out, then you have free reign to do whatever you wish in the market, since you have a monopoly.
- ximeng 16y agoThis depends on how quickly you can ramp up capacity if China starts to increase prices or decrease supply. My guess with developed countries is that the answer to that is "not quickly", as we tend to be more fastidious about bureaucracy. The rate of ramping back up capacity decreases even quicker once China starts to get an R&D advantage from economies of scale and years of research into improving their processes. Compare the hoo hah over rare earth metals. Who's responsible for long-term planning of renewables in the US? The first result in DDG for "US renewable energy plan" is "US renewable energy plan 'shortsighted'": http://www.newscientist.com/blogs/shortsharpscience/2008/10/us-renewable-energy-plan-short.html?DCMP=ILC-hmts&nsref=specrt11_head_Misguided%20states http://www.newscientist.com/blogs/shortsharpscience/2008/10/...