|
This doesn't make a lot of sense. The left is mad that they aren't making money from doing trade with third world countries? Is everything the left believes in due to anger at them not making profits from whatever the issue is? ..... lol
I meant the left is mad on behalf of Third World Countries.
There's no risk involved with natural resources. It's sheer exploitation. The oil company takes the oil out of the ground. There's no risk involved in selling oil.
Sure there is. Prices fluctuate, you have to build the infrastrucure, and there are risks like oil fires, accidents, etc. Those things can cost money. Now granted, resource exploitation isn't risky like a tech or pharma company is risky, but energy companies can and do screw up and fail. Bush was on the board of one such company, Harken Energy.
For the entity that owns the oil but can't exploit it, there is no risk. They get royalties no matter what.
However, this is not what I was arguing. The issue here, IMO, is African domestic industries being wiped out by Chinese ones, and what does Africa get out of it? If I were a policy maker in any African country, I would definetely shield my countries economy from being reduced into a colonial economy that merely supplies raw materials.
There is no economic benefit in the longterm to shielding uncompetitive businesses from competition. Not much in the short term either. All you really do is preserve jobs. At the cost of future innovation and current consumer prices.
Yes, in the short term, Chinese companies will wipe out most African competition. But good African companies will prosper. And many Chinese-owned companies will want to build infrastructure in Africa, which will provide jobs and educate the next generation of African businessmen.
Without this trade, Africa is doomed to be where it is now for a very, very, long time.
They cannot compete with China. They need a heavily modified and nuanced plan for international trade.
They can compete in areas where they have comparative advantage. Such as agriculture and livestock. IF China opens their markets to African goods. Therein lies the problem. China is taking advantage of the world in the same way Japan did. But in the end, you pay the piper. Restrictive import policies will only harm China in the long run, because Chinese businesses will grow fat and complacent in the absence of real competition. China is an emerging economy so everyone is hungry now, but eventually they'll end up like Japan in the absence of real competition.
Moreso than we do with say, China?
China has Most Favored Nation trading status. It's not free trade like we have with Mexico and Canada, but it is better than the terms we give the countries you mentioned. Although one or two of them might have MFN status and I just don't know it.
__________________
chicken butt
|