Quote:
Originally Posted by crucifissio
most western brands would go under in such a scenario...
for example an Iphone would cost say $2000 to be made in the USA and that indian phone is just 4$...
how much tax do you think you could impose on the indian company to protect apple, without hurting trade agreements with the world? 200% tax on 4$ is like 8$...so the india phone would be 12$ instead of 4$ but US goods abroad would probably be met with the %200 tax too...not probably but definitely...
you can protect domestic production only at the cost of screwing over your own exports...
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Only tax goods from countries that have a huge trade deficit with a Western Country. The tax would be at a level where it's still possible to sell, just not as profitable. If you think a $4 phone arrive at the docks, then shops at $4. You're not in any form of business that requires costing products.
Shop markups are between 100-200%.
The EU-US would have no problem trading with each other. Countries like India would have to bow down or lose a lot their economy.
The problem with doing nothing is eventually, so much is made abroad a country is forced to go into debt to buy the products it needs. Whoops, too late.
Still nice to see you start to understand how business has to work.