BusinessDaily.eu – By Mikkel Roland Egesberg – USA might do well with Services, which merkel points out, but its losing out big on machinery, at least if one is to believe their trade balance, so it seems to be according to my hyphotesis…and this is bad, because a positive trade balance in goods, means more money for investments in prodution equipment, so one can achieve economies of scale, so the longer the US runs a trade deficit with China e.g. the bigger production facilities China builds up, and the better economies of scale they achieve, take Taiwanese FoxConn, which produces for Apple and Nokia in China, steel would be another place with increasing economies of scale…No wonder Donald Trump is worries for the US economy, once a motorcity Detroit knows! So in short, Trade gives economies of scale, positive trade balance means larger economies of scale, and as long as the positive trade balance flows are invested into larger economies of scale, the more stock of capital equipment just builds up with time, making it even hard to compete for other nations and their companies! And remember economies of scale often brings with it, a forrest other companies, to support these champions of economies of scale!
- Black jumps high
- Americans just don’t do trade