Re:It's our arrogance is why others hate us.
on
Globalization
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· Score: 1
We have the biggest trade deficit of any country in the world. Sorry to interrupt your rant with facts...
True, if you look at the value of goods imported/exported. However, that is not what matters: the value chain makes it interesting. In "old times", importing goods meant profits gained in another country, and loss of money in the importing one. Today, profits/money/capital travel also - if the foreign low wage manufacturing site is owned or controlled domestically, the profits flow back (and they are higher: low wages, low environment protection costs...). And that's the point: The US has the trade deficit, because its corporations manufacture seemingly domestic goods outside the US, for lower manufacturing costs, and "import" them => a "trade deficit" resulting from exploitation.
And regarding McDonalds, it's a franchise, so when a McDonalds exists in another country it's generally because locals own it and because locals eat there.
McDonalds is not a franchise. It offers the franchise model, but at least outside the US there are more McDonalds corporate owned than franchised. And even franchised: what difference does it make? The profits are even guaranteed for the McDonalds corpartion then, even if they are less, and guess where they end up?
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We have the biggest trade deficit of any country in the world. Sorry to interrupt your rant with facts...
True, if you look at the value of goods imported/exported. However, that is not what matters: the value chain makes it interesting. In "old times", importing goods meant profits gained in another country, and loss of money in the importing one. Today, profits/money/capital travel also - if the foreign low wage manufacturing site is owned or controlled domestically, the profits flow back (and they are higher: low wages, low environment protection costs...). And that's the point: The US has the trade deficit, because its corporations manufacture seemingly domestic goods outside the US, for lower manufacturing costs, and "import" them => a "trade deficit" resulting from exploitation.
And regarding McDonalds, it's a franchise, so when a McDonalds exists in another country it's generally because locals own it and because locals eat there.
McDonalds is not a franchise. It offers the franchise model, but at least outside the US there are more McDonalds corporate owned than franchised. And even franchised: what difference does it make? The profits are even guaranteed for the McDonalds corpartion then, even if they are less, and guess where they end up?