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Politics : American Presidential Politics and foreign affairs -- Ignore unavailable to you. Want to Upgrade?

To: J_F_Shepard who wrote (26362)	2/25/2008 1:29:05 AM
From: TimF	Read Replies (1) \| Respond to of 71588

International trade is simply absorbed in the total market and considered to be a normal part of the market. That's true (at least the normal part of the market part, I don't know what you mean by "Absorbed in the total market") But its also meaningless in this context. The international market, and the domestic market make up the total market, and they are all together as the market, each being "normal parts", but the fact that the market is international, means it isn't limited to one country, which makes it bigger, giving it economies of scale, and also allowing for a greater degree of specialization. You can point to process X, or activity Y as the reason why costs go down, or production go up, but they are all effected, and mostly benefited by the international character of the market. Intel, for example, has about 85% of the world microprocessor market and has had that much for a long time. And Intel is international in character. It has fabs all over the world, it has chip packaging plants in additional countries, some of its most important designs came out of Israel. Its top competitor for the the computer CPU market is an American company that fabs chips in Germany and then packages them in Asia. Both of them build CPUs for computers who's components come from all over the world. I'm not saying that you can't have computers, or increased technology, reduced costs, increased performance etc. for these computers and computer components, without international trade (although cutting off trade now would cause a huge disruption), but that international trade improves and speeds up all these positive changes.