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What's the alternative? Every country should become island with no import or exports? Politicians should understand that there are many things which can't be l
by econcon 7y ago
What's the alternative? Every country should become island with no import or exports?
Politicians should understand that there are many things which can't be locally produced and penalising local businesses from importing those things from other countries is only going to disrupt the value add chain and lower their net exports.
This is something developing countries like India need to learn.
Get bad quality local machine = product crap quality end product = can no longer compete in international market = business goes bankrupt = local machine manufacturer is also dead in long term.
- matheusmoreira 7y ago> What's the alternative? Every country should become island with no import or exports? Reciprocity and fairness? Seems like a basic diplomatic concept but apparently it only applies to "important" countries who have enough leverage to warrant it. How can developing countries develop the leverage necessary to negotiate favorable trade agreements with established super powers like the US and Europe? We need the ability to say "we don't actually need you but we're willing to entertain your proposal if we find it to our benefit". Anything less is actually exploitation. The fact the US can just send an aircraft carrier to somebody's coast to project some force prior to negotiations doesn't help, does it? It was never a level playing field.