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by Cshelton
2810 days ago
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You laugh, but actually yes! Trade, while it's a pretty efficient market today, is not efficient as far as raw materials -> manufacturing -> products go and how they are moved. The most common thing today is to move raw materials to a location where the manufacturing and labor is the cheapest..., the finished product may go right back to where the raw material came from. Seems silly right? The tariffs will alter where raw materials and finished products are sent, if sent anywhere at all. Ideally, raw materials, manufacturing, and final delivery of finished goods would all be next to each other. Of course scarce, or regional, raw materials are different because there may only be a few places in the world to obtain them. But that's not the norm. Governments can economically incentivize all three steps to be at least in the same country so we aren't shipping things across the ocean for basically cheap labor/production cost. |
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