Wednesday, June 6, 2012
Trade Arbitrage versus comparative advantage
There's a fraud under way
The bed time tale of comparative advantage is now told to a global market system in the trail of corporate arbitrage profiteering
The planet is progressing far more in spite of these games not because of them
If we look at the old models one factor ..labor or many labor skills land machines etc
The key requirement to play the comp ad game is rapidly adjusting universal pricing of tradable products
Unencumbered movement and marketing of all products anywhere
And open transfer of technical know how and know what.... even if at a price
None of this holds where MNCs mediate cross border trade
The removal of state imposed border barriers and toll booths only enlivened the MNC game
Now all the advantages of discrimination market segmentation by location
Profits from innovation are carefully oligopolized and oligopsonized
by our grand corsair limited liability trans border corporations