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Is the difference between developing and developed countries really the lack of tariffs or is it due to poor governance? I feel like the reason why countries ar
by zfs 6y ago
Is the difference between developing and developed countries really the lack of tariffs or is it due to poor governance? I feel like the reason why countries are always so pro-tariff is because the benefits of tariffs go towards a small group of people, whereas the cost of tariffs are diffused. But small costs add-up and if you start applying the tariffs to other industries then you start seeing the impacts in the cost of goods.
What are the examples where protecting a country from exports for a few decades then opening it up to competition actually produced a world-class industry? Singapore is an example of a country that has been pro free-trade and has benefited as a result.
- devdas 6y agoSouth Korea. China. The US. The UK. Singapore has pretty much no manufacturing.
- refurb 6y agoSingapore has one of the largest petrochemical refineries in Asia by throughput. It also has a very large pharmaceutical manufacturing base. No doubt there are other industries I don’t know about.
- devdas 6y agoIn fact, if you want actual free trade, then trade in labour must also be freely allowed. Freedom of movement to everyone, as inside the EU, would make even more sense. Every country is rather protective of that though.