Fair Trade is Masochistic

Posted by mshupe 6 years, 10 months ago to Economics
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Fair trade, is in fact, an unjust, self-sacrificing policy, for it involves a government choosing to impose on its own citizens the same harms that are imposed by foreign governments on their citizens.


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  • Posted by CircuitGuy 6 years, 9 months ago in reply to this comment.
    "it isn't always about the money and bargains for the consumer."
    I don't know. When it comes to gov't, I think it's all about getting out of the way so individuals can make money, bargains, or whatever they like.
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  • Posted by DrZarkov99 6 years, 10 months ago in reply to this comment.
    If, because of price disparities, nationally vital domestic industry is beaten out of existence, international blackmail can be the result. For example, highly restrictive mining regulations have shut down U.S. rare earth mineral mining operations, relying on Chinese sources for all of our rare earth needs for electronics. While it would be possible to reactivate known domestic mines, the delay could constitute a national defense crisis should China call a halt to supplying the U.S. with the rare earth supplies it needs for military electronics.

    So long as the international diplomatic scene is benign, reliance on foreign suppliers isn't a problem, but if, for instance, the Chinese decide it's time to punish us for our refusal to recognize the entire offshore developed area as Chinese property, they could easily make life very uncomfortable for us. The fact that some of their own industries would struggle to find other buyers would be less important than teaching us that we best not defy their hegemony.

    As with most elements of international economy, it isn't always about the money and bargains for the consumer.
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  • Posted by term2 6 years, 10 months ago in reply to this comment.
    SALES01@HZSINGO.COM

    Contact is “candy”. Chinese sales people take American names to make it easier for American customers

    Send email in English. They understand
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  • Posted by term2 6 years, 10 months ago in reply to this comment.
    Open borders are ok regarding most commercial goods. I don’t think things like weapons of mass destruction should qualify, nor patent protected items

    I do think a gold standard is critical with no money printing allowed at least in our side. If we had a gold standard we couldn’t have massive trade imbalances without running out of gold. The prices of Chinese stuff would have risen in real terms long ago

    If a country “dumps” aren’t we the winner? Take advantage of their cheap items

    Trump can only ask for the others to be less protectionist under threat of tariffs. Tariffs might work to cut their sales only IF the relative pricing differences are of something like 20%.

    But with China the price disparity is huge, like 3 to 1 on the stuff we buy. So tariffs wontvwork
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  • Posted by CircuitGuy 6 years, 10 months ago in reply to this comment.
    "The Chinese government is very active to prevent foreign competition in their domestic market. "
    If China stops it's people from buying foreign goods, and a second country that buys Chinese goods has no tariffs, which country's citizens are getting the (possibly unfair) benefit?
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  • Posted by DrZarkov99 6 years, 10 months ago in reply to this comment.
    This sounds like "open borders" with regard to trade. Foreign producers should be allowed to dump and destroy American producers, and prohibit sales of American products in their country? We allowed the Japanese and Koreans to annihilate US electronics producers (China got into the game late, but they're catching up), so we should just continue the same self-destructive practices with regard to all American products?

    I understand your position, because you rely on low cost Chinese components, and as an objectivist, all that counts is your self interest - no criticism warranted. However, Our government has sat on its hands for decades, watching one industry after another destroyed by patently distorted trade practices by other nations. Of course our own government hasn't been innocent in that destruction, creating crushing regulations to add to the problem.

    We need to try to level the playing field and create a freer market internationally. Tariffs are only one element of trade that Trump is using to get our trading partners to recognize the pain they bring, with the intent of arguing in favor of a global reduction in artificial barriers. This tactic worked with the EU and Mexico, and Canada appears to be coming around. Sooner or later, China needs to recognize that without some serious revisions in its trade practices, it can't sustain the economic growth it desperately needs.
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  • Posted by term2 6 years, 10 months ago in reply to this comment.
    Chinese consumers freely buy from us suppliers, but under conditions set by their agent (Chinese government). My product is way too expensive for Chinese consumers

    I say so what if they tariff my goods. I don’t have a right to sell to Chinese consumers if the govt they support discourages it. It’s their loss

    As to our tariffs, I say our government is acting as my agent but without my approval and hurting my business I choose to buy parts from a Chinese supplier. If our government offered to tax a competitive product from China to “help” me I would refuse

    I think it’s the business of the Chinese people to control its governments tariff policies, and the us should stay out of it
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  • Posted by DrZarkov99 6 years, 10 months ago in reply to this comment.
    The situation isn't free competition. The Chinese government is very active to prevent foreign competition in their domestic market. How many of your sales of the finished product go to Chinese consumers?
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  • Posted by term2 6 years, 10 months ago in reply to this comment.
    We have a great one. I will have to get you the name and email address when i get to our shop. They handle board mfr, purchasing of parts, populating both surface mount and thru hole parts. We have dealt with them for at least 6 years.
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  • Posted by term2 6 years, 10 months ago in reply to this comment.
    This issue has taught me to be quite specific. Chinese businesses compete fiercely with each other, so cost control is important
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  • Posted by term2 6 years, 10 months ago in reply to this comment.
    Absolutely correct. 100% my experience too. But then again we should be specific as to what we want when ordering from another person from a totally different culture. We have to specify what kind of anodizing we want on our aluminum parts or you are likely to get whatever they happen to select
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  • Posted by term2 6 years, 10 months ago in reply to this comment.
    We do the same thing actually. Chinese are very good competitors and learn from what others do. I would think you would approve of that in general. It’s the way free enterprise works. You could argue about patent infringement, but we could stop that at our border as we do inside the USA

    Chinese are fast learners and very competitive, also among themselves. Maybe THAT is what scares US. Mfrs
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  • Posted by freedomforall 6 years, 10 months ago in reply to this comment.
    term, what vendor makes your populated circuit boards? Our audio preamp is ready and I'm looking for a reliable (inexpensive) place to get the pcb's made and stuffed. (We are taking our prototype unit to an audiophile get together next week.)
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  • Posted by Lucky 6 years, 10 months ago in reply to this comment.
    I agree with the comment of term2 and add the following from my experience of Chinese culture. There is a good chance that you get what you ask for, but, you will not get what you do not ask for. Think for example, corrosion resistance.
    It may be usual in the industry or for that kind of part, but you still have to put it in the spec.
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  • Posted by DrZarkov99 6 years, 10 months ago in reply to this comment.
    With all the static raised about Chinese theft of American intellectual property, their eagerness to respond induces us to share and teach them how to be our competitors. My scooter/motorcycle manufacturing friend has been careful not to share his reengineering of their motors and controllers, so as not to shoot himself in the foot.
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  • Posted by Dobrien 6 years, 10 months ago
    The issues regarding National Security for quality
    Control of metals that are used in military equipment as well as other components is part of the issue , IMHO. A quality Reardon steel type is what we need for our military not a defective or knock off product for our planes and bridges.
    Protecting our steel industry from subsidized dumping and for those reasons may be in our self interest.
    I also believe Having a strong independent vibrant agriculture Industry is also in our self interest.

    I feel better about what President Trump is doing in regards to this countries future than I have over the last thirty years.
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  • Posted by term2 6 years, 10 months ago in reply to this comment.
    Interesting. I would say that the chinese do operate from a relatively remote location from the USA, and they dont understand our market all the time, in particular what specific design features are needed here.

    But, when one specs what you want carefully (and I will admit that one has to do this consistently), they are really good at delivering. Its a bit scary in that the more they understand our markets, the bigger competitors they will be in the future.

    I think they are much more into customer service, less entitled, and certainly less lazy. I can contact them pretty much anytime, as they answer their emails pretty much all the time, and answer right away.

    I get circuit boards made to our spec, populated to our spec that they source locally in china, machine parts made to our spec, and electronic control units prety much made to their spec.
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  • Posted by term2 6 years, 10 months ago in reply to this comment.
    I agree its disturbing. I am going to find a way to increase all our prices by about 15-18% in anticipation of whats going to happen. Once governments get their fingers on the extra money, they wont let go easily. Thats why there is no hue and cry about Trump putting the tariffs on- the establishment is thrilled about the $$ and letting Trump take the heat for shrinking the economy.
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  • Posted by DrZarkov99 6 years, 10 months ago in reply to this comment.
    Quality depends on the item. I have a friend who operates much as you do, using Chinese components for his electric scooters. Their batteries are sound, as are their basic motors, but their motors are not weatherproofed, and their controllers suck. He weatherproofs and adds oil cooling, so what the Indian customers see is a Chinese scooter that has one speed and dies in the rain, unlike the American product.
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  • Posted by $ Olduglycarl 6 years, 10 months ago in reply to this comment.
    "They" get the healthy food that will be stolen from our creation of values; not that it will do them much good...they are already sick, diseased, and stupid.

    It'll be more like a "Game of Thongs".
    (yes I said: thongs)...they are sexually perverted you know.

    [now you might understand what "Throne" they sit upon.]...
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  • Posted by DeangalvinFL 6 years, 10 months ago in reply to this comment.
    Yes, that is what I am afraid of also.
    Retaliatory tariffs are all too likely to get implemented and then ignored as focus moves on to the next crisis.
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  • Posted by term2 6 years, 10 months ago in reply to this comment.
    I would disagree with this view the Indian people seem to have. I have bought in the neighborhood of half a million dollars of chinese parts, and have found their quality really quite excellent. If there is a problem, which isnt often, they quickly replace the product with minimal hassle.

    I have had business associates tell me to watch the quality on the stuff from china, but my experience over 7 years or so of buying is that they are just not correct on their impression.

    I would argue that if chinese quality was not good, walmart and other big companies would not deal with them.

    There are literally hundreds if not thousands of container ships operating between china and the USA, filled with chinese goods. That wouldnt be the case if quality issues like the people of India seem to be complaining about were so pronounced
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  • Posted by term2 6 years, 10 months ago in reply to this comment.
    I did misread the word fair.

    All I see with tariffs is that they arent designed to result in lower tariffs for everyone. They are designed to protect certain pet industries, and as a side benefit they bring in $$ to the governments that institute them.

    Once applied, I say that they are likely to be never removed. For example, if ALL countries had a 25% tariff on everything, the governments would be much happier than if there were 0% tariffs on everything. Plus, if all countries put on 25% tariff, the countries that wanted to be protectionist would go about placing supplemental tariffs on their pet products anyway.

    There is really no push for zero tariffs that can gain traction.
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