Announcement

Collapse
No announcement yet.

World Economics Question

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • #31
    Originally posted by snoopy369
    Well, I'll be looking out for your paper on the subject, then. With any luck your nobel will be arriving soon
    Thank you.

    You see the theory used to be to produce eveything in your own country, and now it's to produce everything in other countries. Neither one is efficient. You don't really need me to right a paper on that do you?
    I drank beer. I like beer. I still like beer. ... Do you like beer Senator?
    - Justice Brett Kavanaugh

    Comment


    • #32
      If you could prove that the theory of comparitive advantage no longer has any application (and suggested a separate theory that does apply), I suspect you would win a nobel prize handily

      I am fairly sure, however, that the theory of comparitive advantage does not have anything to do with your previous post... as no economist I've ever read post-1900 has claimed it is better to do either thing
      <Reverend> IRC is just multiplayer notepad.
      I like your SNOOPY POSTER! - While you Wait quote.

      Comment


      • #33
        Actually there have been plenty of studies showing that plenty of businesses flock to areas with high productivity. Lower wages work for some industries (clothing, etc), but really most want to be somewhere where the employees are highly productive rather than making as little as possible.
        “I give you a new commandment, that you love one another. Just as I have loved you, you also should love one another. By this everyone will know that you are my disciples, if you have love for one another.”
        - John 13:34-35 (NRSV)

        Comment


        • #34
          Originally posted by snoopy369
          If you could prove that the theory of comparitive advantage no longer has any application (and suggested a separate theory that does apply), I suspect you would win a nobel prize handily

          I am fairly sure, however, that the theory of comparitive advantage does not have anything to do with your previous post... as no economist I've ever read post-1900 has claimed it is better to do either thing
          OMFG! Look. The original arguments against mercantilism were based on efficiency, under the assumption that wages are equal in all countries within the system. Look at a supply and demand graph, and tell me if you see how time is represented. It isn't! If time is a factor, and it certainly is, and wages are not equal then the theory doesn't apply. Wages are never going to be equal.
          I drank beer. I like beer. I still like beer. ... Do you like beer Senator?
          - Justice Brett Kavanaugh

          Comment


          • #35
            Originally posted by Imran Siddiqui
            Actually there have been plenty of studies showing that plenty of businesses flock to areas with high productivity. Lower wages work for some industries (clothing, etc), but really most want to be somewhere where the employees are highly productive rather than making as little as possible.
            They can get high productivity and low wages.
            I drank beer. I like beer. I still like beer. ... Do you like beer Senator?
            - Justice Brett Kavanaugh

            Comment


            • #36
              Depends on the industry.
              “I give you a new commandment, that you love one another. Just as I have loved you, you also should love one another. By this everyone will know that you are my disciples, if you have love for one another.”
              - John 13:34-35 (NRSV)

              Comment


              • #37
                Originally posted by Imran Siddiqui
                Depends on the industry.
                The industries that they can't, they are figuring out how too.
                I drank beer. I like beer. I still like beer. ... Do you like beer Senator?
                - Justice Brett Kavanaugh

                Comment


                • #38
                  And plenty are figuring out that it makes more sense to pay a little bit more for labor that is more productive. A good example (though not the industries I'm talking about) is some technical customer service is being moved back to the US because having an accent barrier is a huge blow to productivity (to some points so bad that the customer goes nuclear).
                  “I give you a new commandment, that you love one another. Just as I have loved you, you also should love one another. By this everyone will know that you are my disciples, if you have love for one another.”
                  - John 13:34-35 (NRSV)

                  Comment


                  • #39
                    Originally posted by Kidicious


                    OMFG! Look. The original arguments against mercantilism were based on efficiency, under the assumption that wages are equal in all countries within the system. Look at a supply and demand graph, and tell me if you see how time is represented. It isn't! If time is a factor, and it certainly is, and wages are not equal then the theory doesn't apply. Wages are never going to be equal.
                    Are we still talking about the theory of comparitive advantage? I don't see anything there talking about the theory of comparitive advantage.

                    Perhaps some light reading would help?
                    <Reverend> IRC is just multiplayer notepad.
                    I like your SNOOPY POSTER! - While you Wait quote.

                    Comment


                    • #40
                      Originally posted by Imran Siddiqui
                      And plenty are figuring out that it makes more sense to pay a little bit more for labor that is more productive. A good example (though not the industries I'm talking about) is some technical customer service is being moved back to the US because having an accent barrier is a huge blow to productivity (to some points so bad that the customer goes nuclear).
                      Some manufacturing also reportedly returned to Germany after disappointments abroad.

                      Comment


                      • #41
                        Originally posted by Agathon The only problem they face is equipping their people with the requisite skills and building up their industrial base. The latter is well on the way, and the former will follow.
                        You got it backwards. Without educating the population you can't have an industrial base nowadays.

                        Comment


                        • #42
                          Not necessarily; it follows both ways, IMO. You certainly must have skills to perform industrial tasks (some), but the industrial base allows for the focus on education; if you have to have your kids home to work the farm all day, in order to get enough food to eat, you certainly can't educate them.
                          <Reverend> IRC is just multiplayer notepad.
                          I like your SNOOPY POSTER! - While you Wait quote.

                          Comment


                          • #43
                            It's not about time, it's about priorities. A country can always get kids a solid education if it wants to. No excuses.

                            Comment


                            • #44
                              It can be hard to prioritize 'education' over 'eating', however. I think the point is valid (and proven empirically).
                              <Reverend> IRC is just multiplayer notepad.
                              I like your SNOOPY POSTER! - While you Wait quote.

                              Comment


                              • #45
                                Kidicious
                                They can get high productivity and low wages.
                                That's quite simply false.

                                An american worker is much more productive hour per hour than almost any worker anywhere in the world... Why? Because the technology is generally state of the art and the best here- thus they don't need to employ many people to produce each product.

                                Why do non-western countries sometimes post higher productivity ratios, then? Well, it's often because the workers are working longer hours.

                                But then you have questions of quality control- which frankly became an issue in 2007 with faulty Chinese pharmaceuticals, toys, pet food, and other items being imported to the west. (Interestingly Nigeria was the first country to catch onto the pharmaceutical problems.)

                                Businesses will not always flock to the place with the lowest wages- Currency fluctuations also affect pricing, as do transportation costs. This explains why the Japanese and other non-American businesses are opening more car manufacuring plants and making plans to open more industries in the United States due to the currency depreciation.

                                There are many factors in the global movement of factors of production other than that of Labor and Wages.

                                ---
                                Now, you might argue that importing high tech products to a low tech country makes sense and would lead to a situation such as you describe.

                                There are a few problems with that:

                                *In the 1980s (IIRC), South Korea tried to build high certain technology businesses in Chemicals and a few other strategic areas(I believe), but it simply didn't have the technological talent to operate the businesses, so it gave up until the late 1990s.

                                *In countries without reliable infrastructure (read: Most of Africa) it is impossible to use high technology because of power and water interruptions.

                                * Countries with low wages appear to have tendencies to rank higher on corruptivity scales- therefore, there are some benefits to doing business in places with good transparency.

                                Thus: Transparency, Infrastructure, and Local Talent contribute highly to choices of where people will build their businesses.

                                Imran is also very right about this--->
                                And plenty are figuring out that it makes more sense to pay a little bit more for labor that is more productive. A good example (though not the industries I'm talking about) is some technical customer service is being moved back to the US because having an accent barrier is a huge blow to productivity (to some points so bad that the customer goes nuclear).
                                VetLegion
                                It's not about time, it's about priorities. A country can always get kids a solid education if it wants to. No excuses.
                                Then why do so many countries fail at supplying that factor? You can't just, for example, expand the college system in one year from 100 to 1000 graduates without reducing the quality of the children being taught- either you would have to increase class sizes to do that, or hire teachers that aren't very good at teaching.

                                but I think you are right that education comes before the industrial base, at least historically. However, a more apt description would be that education and industrial base tend to track each other as countries move up the productivity ladders. Education might come first, but as snoopy states, it's difficult to fully develop it unless more cash is coming in.
                                -->Visit CGN!
                                -->"Production! More Production! Production creates Wealth! Production creates more Jobs!"-Wendell Willkie -1944

                                Comment

                                Working...
                                X