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by afiedler
2492 days ago
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There's a fantastic Planet Money episode about the Universal Postal Union[1] and why this is a problem. Basically, the UPU assumes that a country will send about the same amount of international mail that it receives. There may be an imbalance between any two countries, but in aggregate, it assumes that these imbalances will net out. Furthermore, the UPU sets rates based on the sending country's costs. Since China was classified as a developing country, it was very cheap for Chinese to send mail into the international mail stream. This was justified because China's last mile delivery for mail received from other countries is also very cheap. However, with the huge US-China trade imbalance, these assumptions no longer hold. U.S. shippers were at a major disadvantage because of this. [1] https://www.npr.org/sections/money/2018/08/01/634737852/epis... |
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