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Imported Inputs into a GDP will always be SPOF... Wont they? Like you need to have serious incentives to import all your inputs. Else, you are a leeching eco
by samstave 6y ago
Imported Inputs into a GDP will always be SPOF...
Wont they?
Like you need to have serious incentives to import all your inputs.
Else, you are a leeching economy regardless of the value of your goods (Apple)
- marcosdumay 6y agoMy comment was about a single factory. In theory all the factories could import all their inputs, because the commodity that is causing the Dutch disease will offset it, but on the micro-level, a company can take advantage of a low average salary yet high costs market that is characteristic of the disease.
- pydry 6y agoSo an upstart smartphone manufacturer could take advantage of the high local salaries to manufacture a local brand of overpriced smartphones solely for the local market? I'm not sure that's viable nor helpful as an idea when you can just import iPhones from China.