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Area "A" has more Rolls Royces than area "B", but that does mean area "B" has more potential buyers, thus Rolls Royce should concentrate in that area. There are a lot of economic variables that come to play, and in this case, area "B" does not have the income to purchase Rolls Royces, so the company does not direct efforts there. About every company does this, this is why Trader Joe's for example is only found in certain areas.
You are correct. And this is exactly why no one is manufacturing Rolls Royces in Mexico. They are making small, inexpensive cars, to serve a particular world-wide market that is not the U.S. U.S. automakers can sell Rolls Royces to the 10% here, but they won't be able to sell millions of inexpensive cars in other markets because they will all be made by foreign automakers in other countries.
It's the same reason that there is no K-Mart in the fancy upscale suburb in which I reside, but there are lots of little boutiques with crazy expensive stuff.
We'll see what consumers say if they have to start paying 35% + more for some products, I don't hthink they're gonna like it.
Unless that product can only be sourced in Mexico, then thats not going to happen.
Cars? No. ACs? No. Fruits and veg? No (even avocados - since California produces them, Guatemala and CR and other central and South American countries produce them etc.. Whose going to buy a $5 Mexican avocado when there are $4 hass avocados on the shelf? no one. So the Mexcian cos. have to take the hit and reduce their price so it meets what the market pays for that product....).
The only product I can see so far that has no non-Mexican source in any large amount is blue agave tequila and Mezcal.
How would this have been different if Clinton had won, or for that matter Bernie Sanders or anyone else?
It wouldn't. China was never going to pay US worker's wages to have cars assembled in the US. Mexico's unemployment rate means it was never in a situation where it was going to choose between Chinese or US investment - it would always take both.
And Chinese made electronics after a 35% tariff is applied?
Judging by the recent travel ban fiasco, planning isn't exactly a high point of this crew.
I don't trust their planning either. But since you mention China, China has for years imposed tariffs on all sorts of different products, as have European countries. This is business as normal, the only thing that changes from year to year is the extent of the tariff and on which particular products. If it gets exciting it becomes a "trade war." Still - its being going on for decades.
Good for them. I hope every country in the world stops trading with us.
How is China getting cheap labor in Mexico to build cars stopping trading with us? They went to Mexico - because...drum roll..... the labor there is very cheap. Regardless of Trump, Clinton, Abraham Lincoln or anyone else.
I don't trust their planning either. But since you mention China, China has for years imposed tariffs on all sorts of different products, as have European countries. This is business as normal, the only thing that changes from year to year is the extent of the tariff and on which particular products. If it gets exciting it becomes a "trade war." Still - its being going on for decades.
not really. This is a myth. Countries have to follow WTO regulations and cant just slap tariffs on products left and right as they please.
How is China getting cheap labor in Mexico to build cars stopping trading with us? They went to Mexico - because...drum roll..... the labor there is very cheap. Regardless of Trump, Clinton, Abraham Lincoln or anyone else.
And it gives them a platform from which to sell to the Central and South American markets without having to ship cars across the ocean.
If they can undercut the prices of the Fords, Chevys, etc. that are being built for that market, that will absolutely cut down on trade with the U.S.
Does anyone actually believe that international sales don't help to maintain factories here?
shallow thinking is often the result of people driven by a sense of over-confidence, based on incomplete data, and ficti
Quote:
Originally Posted by bg7
How is China getting cheap labor in Mexico to build cars stopping trading with us? They went to Mexico - because...drum roll..... the labor there is very cheap. Regardless of Trump, Clinton, Abraham Lincoln or anyone else.
Maybe you should consider to think in terms of "strategy", because nothing is single dimensional. Power is never a singular elements, its a combination of factors converging into function, is what produces 'power".
definition of "Strategy" ((a plan of action or policy designed to achieve a major or overall aim.))
definition of "Power" = (( the capacity or ability to direct or influence the behavior of others or the course of events )).
American people need to come to terms to get past shallow thinking, sadly, shallow thinking is often the result of people driven by a sense of over-confidence, based on incomplete data, and fictions.
Note the unintelligent and idiocy of some of the comments, and one will grasp the ignorance of the collective whom become endorsing parties to the bad situations which are evolving rapidly under the new Administration.
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shallow thinking is often the result of people driven by a sense of over-confidence, based on incomplete data, and ficti
