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by DataDive 146 days ago
None of these products would be made in the US, though ... and none would affect trade imbalance ... so the net effect might only be to increase inefficiency in your own country
3 comments

how much do you think of my £1 can of coke stays in the UK?

maybe a quarter?

the rest will be a "licensing fee", which goes straight to Atlanta, Georgia

(well, now it doesn't)

Are cans of coke only £1? The dollar is really weaker than I thought
Depends where you buy them, but you can get them for half that: https://www.tesco.com/groceries/en-GB/products/273867627?_gl....
Its just sugar water.
What if it's Coke Zero?
It is definitely striking that a 2L bottle of local municipal water plus caramel color and a pinch of aspartame costs $2.65

Fucking insane. Coke has a higher label tax than Apple.

The other infuriating part is that the generic brand soda is also expensive for some reason. What an efficient market, when generic water can maintain an insane profit margin.

Liquids are heavy. A large chunk of the retail cost in bottled drinks of all types is transport and distribution.

The same is true of liquid detergents and soaps and anything else you buy that is mostly water - even fresh produce.

But GP is boycotting big corporations, and presumably replacing them with local businesses. Unlikely any US small businesses because they don’t advertise internationally (and usually don’t ship). In this case, two wrongs make a right: he’s helping his nation’s smaller businesses and not hurting those from the US.
How would investing in locally produced stuff increase inefficiency ?
If you pay someone 3x for work/service/product, x is the price and 2x is what you pay to encourage them to make/do the things instead of the people who could/would do it for x.

However, you're not paying 3x. I assume you're not really paying anything notably higher than x, right? So the encouragement is nearly zero.

Lack of scale or expertise (competitive advantage).