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Strategies & Market Trends : Mish's Global Economic Trend Analysis
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To: Cogito Ergo Sum who wrote (20905)1/10/2005 9:28:23 AM
From: RealMuLan  Read Replies (1) of 116555
 
Hi, Kastel,

1) One major reason for the wide trade deficit bet. China and the US is the trade restriction of all high-tech product. So you cannot expect China to fill the gap by only buying wheat, soy or Boeing from the US<g>; This is also the major reason why the trade deficit bet. the US and India is low;

2) The way of the US counting trade deficit is not fair to China;

3) It is true that labor in Canada is more expensive than in China, as it should be, but Canada have other benefit. As for Mexico, some outsourcing has already returned from China, as the energy and labor in China are getting more expensive. And Mexico should stress more on education... to win back the outsourcing
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