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Politics : Foreign Policy Discussion Thread -- Ignore unavailable to you. Want to Upgrade?

To: KLP who wrote (4630)	2/24/2003 4:28:59 PM
From: kumar	Read Replies (2) \| Respond to of 15987

Where has Europe (and the ECB) been with the US when other countries in the Far East and South America have "had less restrictions and lower costs of production" than American goods/services.??? Its the nature of capitalism : survival of the person offering equivalent value at the lowest price.

To: KLP who wrote (4630)	2/25/2003 5:20:40 AM
From: zonder	Read Replies (1) \| Respond to of 15987

This sounds like a whine to me.... And this sounds like you don't know first thing about economics, especially in relation to free capital movement. I am asking a question - What is the economic rationale behind EU taking in East Europe? Because the reason is unclear to me. If it is clear to you, enlighten me. If not, maybe you should try to refrain from snickering at things you do not understand. Where has Europe (and the ECB) been with the US when other countries in the Far East and South America have "had less restrictions and lower costs of production" than American goods/services.??? This tells me you have no clue about what I have just said. The issue is COMPANIES moving production to East Europe. We are not talking about "Europe" (huh?) as a whole moving anywhere, we are not talking about the European CONSUMERS preferring East European products, and we sure as hell are NOT talking about European Central Bank (ECB) developing a preference for East European production. What on earth are you talking about??? What do "American goods/services have ANYTHING to do with East Europe joining the EU and EU production hence moving to these countries??? I will make it simple for you: The east-European countries about to join the EU are more favourable for production facilities (factories) to be based from the moment they become part of the EU, because: (1) They already have a lot of qualified and unemployed people, willing to work with very reasonable salaries (2) The corporate environment is not as strict as some west-European countries (3) They are very close to the rest of Europe, so a factory in Czech Republic beats BY FAR having your factory in China. Why did this migration of production did not happen before ascension to EU was a serious prospect? Because of CREDIBILITY! These countries lacked credibility and trust - If you are going to build a factory in Ukraine, you'd rather be sure that the country is part of the EU where it is certain not to lapse back in to some state economy where your factory is nationalized or something.