Posted by admin | Posted in Peru | Posted on 20-09-2009
Tags: canada, china, news, Peru, peru china free trade agreement, trade
Has free trade turned the USA into a 3rd world country?
Before you rant read:
We use to be the world’s industrial force, importing raw materials and exporting finished goods.
Nowadays we import most finished goods from China, India, Mexico, Peru and soon Colombia.
We do export scrap metal hoorray for us?
Stan:
I didn’t know job loss due to outsourcing and the devaluation of our currency raised the standard of living of most americans besides corporate bigwigs.
Thank you for the enlightment.
Very interesting question… I agree with you from the labor cost point of view… Our labor cost is way too expensive to be price competitive…. Someone said that we export technology from MS and Apple, but most if the product is assembled somewhere else (China, etc.)
Our product is not competitive because of the labor cost, cost to run production, taxes, power, etc.
However without free trade the services, product quality, and price would go up (and cause even more higher prices and essentially higher labor rates) so it a vicious circle… We must become more competitive in terms of labor in order to compete… Good news – we are more cooperative than Western Europe already, so give it some time…
China, Peru sign free trade agreement
