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