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When India kicked out Coca-Cola, local sodas thrived (2019)

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Re: When India kicked out Coca-Cola, local sodas thrived (2019)

#71
post #2

People like to pretend that protectionism is such a bad thing. But Western nations built themselves through protectionism, it's something China has been doing to great success and the Asian tiger economies (primarily South Korea) did as well. After all, there's only so much you can do for your population if you never ensure a steady supply of high quality jobs that provide a path into the middle class, and you don't…

This is wrong, misguided and naive. International trade when done with effective reciprocity and managing the trade deficit, can lead to competition on a larger scale, better outcome for consumers and specialization in particular aspect of manufacturing or services. Even domestically, specialization is how human species became to me. If humans continued to be inwards looking and never engaged in barter-trade or any k…

"International trade when done with effective reciprocity and managing the trade deficit, can lead to competition on a larger scale, better outcome for consumers and specialization in particular aspect of manufacturing or services."

you need a properly functioning local government, which is pretty rare in developing countries.

Re: When India kicked out Coca-Cola, local sodas thrived (2019)

#72
post #2

People like to pretend that protectionism is such a bad thing. But Western nations built themselves through protectionism, it's something China has been doing to great success and the Asian tiger economies (primarily South Korea) did as well. After all, there's only so much you can do for your population if you never ensure a steady supply of high quality jobs that provide a path into the middle class, and you don't…

Like Indian comment producers were found colluding to keep the domestic cement price high.

If there was competition from foreign players, this would have not happened

Re: When India kicked out Coca-Cola, local sodas thrived (2019)

#73
post #2

People like to pretend that protectionism is such a bad thing. But Western nations built themselves through protectionism, it's something China has been doing to great success and the Asian tiger economies (primarily South Korea) did as well. After all, there's only so much you can do for your population if you never ensure a steady supply of high quality jobs that provide a path into the middle class, and you don't…

"People like to pretend that protectionism is such a bad thing"

David Ricardo mathematically proved it was a bad thing over 200 years ago. It absolutely befuddles me that people, especially in scientific communities, continue to support its implementation. Hong Kong has always been free trade and their GNP per capita is now greater than all of western europe, barring Norway (which is equal to HK). Protectionism makes yourself poorer.

Isn't interesting concerning tariffs that what we do to our enemies during wartime we do to ourselves during peacetime.

Re: When India kicked out Coca-Cola, local sodas thrived (2019)

#74
post #71

Earlier quoted context omitted.

This is wrong, misguided and naive. International trade when done with effective reciprocity and managing the trade deficit, can lead to competition on a larger scale, better outcome for consumers and specialization in particular aspect of manufacturing or services. Even domestically, specialization is how human species became to me. If humans continued to be inwards looking and never engaged in barter-trade or any k…

"International trade when done with effective reciprocity and managing the trade deficit, can lead to competition on a larger scale, better outcome for consumers and specialization in particular aspect of manufacturing or services." you need a properly functioning local government, which is pretty rare in developing countries.

But it's not an indictment of free trade

Re: When India kicked out Coca-Cola, local sodas thrived (2019)

#75
post #2

People like to pretend that protectionism is such a bad thing. But Western nations built themselves through protectionism, it's something China has been doing to great success and the Asian tiger economies (primarily South Korea) did as well. After all, there's only so much you can do for your population if you never ensure a steady supply of high quality jobs that provide a path into the middle class, and you don't…

"People like to pretend that protectionism is such a bad thing" David Ricardo mathematically proved it was a bad thing over 200 years ago. It absolutely befuddles me that people, especially in scientific communities, continue to support its implementation. Hong Kong has always been free trade and their GNP per capita is now greater than all of western europe, barring Norway (which is equal to HK). Protectionism makes…

Cause mathematics and economics deal with the same layer of abstractions

Re: When India kicked out Coca-Cola, local sodas thrived (2019)

#76
post #2

People like to pretend that protectionism is such a bad thing. But Western nations built themselves through protectionism, it's something China has been doing to great success and the Asian tiger economies (primarily South Korea) did as well. After all, there's only so much you can do for your population if you never ensure a steady supply of high quality jobs that provide a path into the middle class, and you don't…

"People like to pretend that protectionism is such a bad thing" David Ricardo mathematically proved it was a bad thing over 200 years ago. It absolutely befuddles me that people, especially in scientific communities, continue to support its implementation. Hong Kong has always been free trade and their GNP per capita is now greater than all of western europe, barring Norway (which is equal to HK). Protectionism makes…

> David Ricardo mathematically proved it was a bad thing over 200 years ago.

Ricardo’s proof applies to comically simplified conditions which fail to consider a number of factors that exist in real world trade and resulting shifts of specific industries between countries including:

(1) potential impacts of current activity on future production possibilities, and

(2) strategic impacts of different production patterns and how that effects non-trade international relations, including war.

That's not to say it's not an important result that has massive implications for policy, but it is far from proof that protectionism is a bad thing in every case. It does prove that it always comes at a short-term cost, so you'd better have a specific long-term strategy that justified the short-term cost, though.

Re: When India kicked out Coca-Cola, local sodas thrived (2019)

#77
post #2

People like to pretend that protectionism is such a bad thing. But Western nations built themselves through protectionism, it's something China has been doing to great success and the Asian tiger economies (primarily South Korea) did as well. After all, there's only so much you can do for your population if you never ensure a steady supply of high quality jobs that provide a path into the middle class, and you don't…

"People like to pretend that protectionism is such a bad thing" David Ricardo mathematically proved it was a bad thing over 200 years ago. It absolutely befuddles me that people, especially in scientific communities, continue to support its implementation. Hong Kong has always been free trade and their GNP per capita is now greater than all of western europe, barring Norway (which is equal to HK). Protectionism makes…

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Re: When India kicked out Coca-Cola, local sodas thrived (2019)

#78
post #2

People like to pretend that protectionism is such a bad thing. But Western nations built themselves through protectionism, it's something China has been doing to great success and the Asian tiger economies (primarily South Korea) did as well. After all, there's only so much you can do for your population if you never ensure a steady supply of high quality jobs that provide a path into the middle class, and you don't…

"People like to pretend that protectionism is such a bad thing" David Ricardo mathematically proved it was a bad thing over 200 years ago. It absolutely befuddles me that people, especially in scientific communities, continue to support its implementation. Hong Kong has always been free trade and their GNP per capita is now greater than all of western europe, barring Norway (which is equal to HK). Protectionism makes…

> their GNP per capita is now greater than all of western europe

What if Shenzhen didn't exist across the river? HK is part of a unique economic environment with significant externalities making it prosperous.

Re: When India kicked out Coca-Cola, local sodas thrived (2019)

#79
post #2

People like to pretend that protectionism is such a bad thing. But Western nations built themselves through protectionism, it's something China has been doing to great success and the Asian tiger economies (primarily South Korea) did as well. After all, there's only so much you can do for your population if you never ensure a steady supply of high quality jobs that provide a path into the middle class, and you don't…

"People like to pretend that protectionism is such a bad thing" David Ricardo mathematically proved it was a bad thing over 200 years ago. It absolutely befuddles me that people, especially in scientific communities, continue to support its implementation. Hong Kong has always been free trade and their GNP per capita is now greater than all of western europe, barring Norway (which is equal to HK). Protectionism makes…

[deleted]

Re: When India kicked out Coca-Cola, local sodas thrived (2019)

#80
post #2

People like to pretend that protectionism is such a bad thing. But Western nations built themselves through protectionism, it's something China has been doing to great success and the Asian tiger economies (primarily South Korea) did as well. After all, there's only so much you can do for your population if you never ensure a steady supply of high quality jobs that provide a path into the middle class, and you don't…

> it's something China has been doing to great success and the Asian tiger economies (primarily South Korea) did as well.

When india imposed duties against chinese steel, the steel sector grew but soon the Real Estate sector accrued high input costs and real estate became expensive.

Same happened to automobile sector in india, yes few people gain from protectionism at expense of others.

I'd go on 1 foot and tell everyone, quality of skilled labor in india is bad not because of lack of quality education but because they are not able to afford quality tools which international market has to offer. Primary reason for that is those tools are only available to you if you work for big companies, goverment has put lots of taxes/tarrifs/duties on that which is HUGE relative to what people make there.

India has taxes duties more than europe but doesn't offer its citizen as much benefits as europe does.

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