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'''Reply about the above Reply''' Is it always the case that two countries benefit highly unevenly with regards to mutual trade? Refrigerators provide a case in point. A Chinese company, Haier, makes refrigerators and many similar products and wanted to sell them in the United States. However a mixture of tariffs and the expense of shipping bulky things like refrigerators compelled Haier to build a factory in South Carolina. The current arrangement is for Haier to make the parts in China, ship them to South Carolina, and have American workers build the final products, which tends to be the most complex and hence highest-paying set of jobs. By using the division of labor that Chris mentioned Chinese workers turn out huge numbers of parts and American workers turn out huge numbers of cheap refrigerators. Since so many units are being built many American workers are employed in the better paying jobs, and American consumers get cheaper refrigerators. Simultaneously some very poor workers in China get to make a living. The automobile industry shows similar characteristics, with many American automakers importing the parts that go into American-built cars.  
 
'''Reply about the above Reply''' Is it always the case that two countries benefit highly unevenly with regards to mutual trade? Refrigerators provide a case in point. A Chinese company, Haier, makes refrigerators and many similar products and wanted to sell them in the United States. However a mixture of tariffs and the expense of shipping bulky things like refrigerators compelled Haier to build a factory in South Carolina. The current arrangement is for Haier to make the parts in China, ship them to South Carolina, and have American workers build the final products, which tends to be the most complex and hence highest-paying set of jobs. By using the division of labor that Chris mentioned Chinese workers turn out huge numbers of parts and American workers turn out huge numbers of cheap refrigerators. Since so many units are being built many American workers are employed in the better paying jobs, and American consumers get cheaper refrigerators. Simultaneously some very poor workers in China get to make a living. The automobile industry shows similar characteristics, with many American automakers importing the parts that go into American-built cars.  
 
When it comes to enriching a country's enemies, obviously an odious regime like Nazi Germany shouldn't be supported. At the same time two countries might be kept from fighting each other if they trade a great deal, and increasing trade might make China an increasingly capitalist country, which is all to the good. It just seems to me that everyone getting richer and less likely to fight each other is better than people being poorer and more likely to fight. --[[User:WOVcenter|WOVcenter]] 02:51, 9 March 2007 (EST)WOVcenter
 
When it comes to enriching a country's enemies, obviously an odious regime like Nazi Germany shouldn't be supported. At the same time two countries might be kept from fighting each other if they trade a great deal, and increasing trade might make China an increasingly capitalist country, which is all to the good. It just seems to me that everyone getting richer and less likely to fight each other is better than people being poorer and more likely to fight. --[[User:WOVcenter|WOVcenter]] 02:51, 9 March 2007 (EST)WOVcenter
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I think when you notice economies in communist nations where they don't have free trade, you have a higher poverty rate. Communism tries to control prices and control the market, as opposed to free trade when the invisible hand is moved by supply and demand and not some government. However; I would say, that it also depends on the tax rate and interest rate on how wealth is increased. During the JFK years, the wealthy had a 87% tax rate, and wealth had not increased much even if the market was free in the USA. If the government has high taxes on the wealthy, the wealthy are less likely to invest it or spend it, which distributes wealth to the middle-class and poor in the form of jobs, dividends, and buying from small companies so they can employ more people. --[[User:Orion Blastar|Orion Blastar]] 23:19, 9 March 2007 (EST)
    
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