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Not that I'm doubting you, I'm just trying to understand this claim. Can you explain the motivation behind exporting at a loss? If the argument is that there's
by lhorie 5y ago
Not that I'm doubting you, I'm just trying to understand this claim. Can you explain the motivation behind exporting at a loss? If the argument is that there's too much timber supply driving down prices to the point that some of the inventory is sold at a loss, wouldn't it make more sense to just cut less trees?
- kokanator 5y agoSay the market price of a tree had dropped to $1 from $5. If you can export a tree for -$1 and create a domestic shortage which causes a tree domestically to be worth +$4. You effectively double the value of a tree. ( hope the math is right just trying to make an example ) I am not sure why they didn't just cut less trees other than they probably had bids that would expire ( another policy problem ).