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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 378.38+2.7%Nov 10 4:00 PM EST
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To: TobagoJack who wrote (73574)4/27/2011 10:32:31 AM
From: KyrosL  Read Replies (1) of 217669
 
One problem with the shift of manufacturing to the interior of China is transportation costs, which are zooming up along with the price of oil. Coastal export centers avoid those extra transport costs as well as the tolls and other impediments that local governments impose in the movement of goods in the interior. Perhaps the interior will concentrate on locally consumed goods.

Transport costs are a double edged sword. First you have to transport raw materials, much from abroad, to manufacturing centers. Then you have to ship, much to abroad, the finished goods. Much of the profit ends up in oil exporters' pockets.
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