Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Snowshoe who wrote (81770)	10/20/2011 4:45:06 AM
From: Ilaine	1 Recommendation Read Replies (2) \| Respond to of 217686

Sata has made China’s growing influence in Zambia’s economy a political issue, threatening to run “bogus” Chinese investors out of the country. He tapped into anti-Chinese sentiment running high in a country where many see the Chinese as exploitative and abusive, and as destroying local manufacturing by flooding markets with cheap goods. Two entirely different problems. The cheap goods problem is simple economics, the law of comparative advantage. Bad for the more expensive local manufacturer; good, at least in the short run, for the consumer. Yes, their economy is being hollowed out. Only solution, compete with Chinese on cost and efficiency, and who can do that? Beat them or join them. You will be assimilated. Exploitative and abusive business practices, now that is a fascinating problem. From outside perspective, the way Chinese run their own businesses in China is exploitative and abusive. So why would they change their ways in, say, Zambia? It's like watching 19th century style colonization all over again. Hope it turns out better this time. See, e.g., Hayek and Friedman on negative externalities. True costs of economic transactions (pollution, injured workers) passed on to third parties who did not participate in the transaction. Things are not as cheap as they seem once you tally up all the costs. en.wikipedia.org If I can shave a penny off the cost of my goods by polluting the environment (which must be cleaned up or else people get sick and die) or by an unsafe work place (which, again, causes people to get sick and die), the overall cost for those goods is actually greater. Prevention is cheaper than cure.