Doesnt work like that.
American firms own oil fields, mines and numerous sectors globally.
US STEEL purchased by Japan's Nippon Steel for 14.9 Billion.
- Thread starter Ed MOTHERFUCKING G
- Start date
Doesnt work like that.
American firms own oil fields, mines and numerous sectors globally.
Off topic, But this sounds like the current Chinese Communist party approach to business .
Do you recall taking macroecon in undergrad? My favorite takeaway from that course was the idea that the whole world benefits from the distribution of supply chains based on comparative advantage.
Effectively in the span of one week,
- James McFreedom makes all his clothes, but only makes 2 shirts cause he is bad at it and has other priorities.
- and Amy Patel makes all her clothes and makes only the 7 shirts she needs cause she is good at it, but has no need to make more despite having nothing better to do.
- and Ming makes 5 shirts cause she is mediocre at it but has too many other things preventing her rom making enough shirts for the week
- and Yuri being a paraplegic who can't make any clothes , but only buys from his best friend James taking one of his only two shirts.
You would instead
- Stop James from making shirts so he can do other stuff that may alleviate the load on ming .
- Stop Yuri from only buying 1 shirt from James and let him do other things with his time while getting shirts from Amy and ming
- Shift most production of shirts to Ming who now makes 21 shirts and sells the 14 she doesn't need
- Shift some production to Ming so she makes all 7 shirts she needs and one spare.
You effectively move from an inefficient system that produced 14 shirts to one that created 29 shirts and freed 2 more workers to do something more productive with their time.
I personally see real world trade in the same way. I fear the world is shifting back to its inefficient and protectionist past from the 1800s and early 1900s. A fear of return to an unproductive world. Effectively the whole world will suffer if billy bob in Montgomery stays in his steel plant and doesn't move on to opportunities only he can access at alaBama State that his counterparts in Tohoku prefecture can't.
If the big concern is the time and money it takes Jim Bob to transition to an exciting new career in ABC proffession, then it would be feasible to tag a onetime free to the merger of the steel plant with a foreign opertaor in exchange for long term acces to US markets. The fee would then be used to hasten Jim Bobs transtion to making flux capcitors at UBama without depriving the world of the greater production that the global supply chain would offer
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Off topic, But this sounds like the current Chinese Communist party approach to business .
Do you recall taking macroecon in undergrad? My favorite takeaway from that course was the idea that the whole world benefits from the distribution of supply chains based on comparative advantage.
Effectively in the span of one week,
- James McFreedom makes all his clothes, but only makes 2 shirts cause he is bad at it and has other priorities.
- and Amy Patel makes all her clothes and makes only the 7 shirts she needs cause she is good at it, but has no need to make more despite having nothing better to do.
- and Ming makes 5 shirts cause she is mediocre at it but has too many other things preventing her rom making enough shirts for the week
- and Yuri being a paraplegic who can't make any clothes , but only buys from his best friend James taking one of his only two shirts.
You would instead
- Stop James from making shirts so he can do other stuff that may alleviate the load on ming .
- Stop Yuri from only buying 1 shirt from James and let him do other things with his time while getting shirts from Amy and ming
- Shift most production of shirts to Ming who now makes 21 shirts and sells the 14 she doesn't need
- Shift some production to Ming so she makes all 7 shirts she needs and one spare.
You effectively move from an inefficient system that produced 14 shirts to one that created 29 shirts and freed 2 more workers to do something more productive with their time.
I personally see real world trade in the same way. I fear the world is shifting back to its inefficient and protectionist past from the 1800s and early 1900s. A fear of return to an unproductive world. Effectively the whole world will suffer if billy bob in Montgomery stays in his steel plant and doesn't move on to opportunities only he can access at alaBama State that his counterparts in Tohoku prefecture can't.
If the big concern is the time and money it takes Jim Bob to transition to an exciting new career in ABC proffession, then it would be feasible to tag a onetime free to the merger of the steel plant with a foreign opertaor in exchange for long term acces to US markets. The fee would then be used to hasten Jim Bobs transtion to making flux capcitors at UBama without depriving the world of the greater production that the global supply chain would offer
the issue isn't about inefficiency tho, it's about which outcome is more profitable. U.S steel will still be operating in the U.S just with different owners now.
Gritsngravy
Superstar
I read this story a couple days ago, maybe I’m looking to deep into it but it seems like one of the behind closed doors deals
Just like isreal and the uk, Japan is a very important ally in that particular region, USA needs Japan to be successful to an extent, Japan thinks they can make more money in steel well let them buy one of the bigger steel companies in America
It’s a win win, Japan can be more profitable and America can supply people with more jobs, these companies in the states acting like they broke right now so this probably is a good thing for the country at the moment
Just like isreal and the uk, Japan is a very important ally in that particular region, USA needs Japan to be successful to an extent, Japan thinks they can make more money in steel well let them buy one of the bigger steel companies in America
It’s a win win, Japan can be more profitable and America can supply people with more jobs, these companies in the states acting like they broke right now so this probably is a good thing for the country at the moment
FruitOfTheVale
Superstar
Japan's Nippon Steel to buy U.S. Steel in a $14.9 billion deal
Japan's Nippon Steel clinched a deal on Monday to buy U.S. Steel for $14.9 billion in cash, prevailing in an auction for the 122-year-old iconic steelmaker.www.cnbc.com
The union is fukked...
This is very sad, personally. Both my grandfathers, 3 uncles, and my dad during summers from college used to work at US Steel in Gary, IN. I have my grandfather's retirement watch which bears my name, thanking him and my grandmother for 40 years of service.
US Steel, and auto makers built the entire midwest, and most early millennials from the midwest's family foundation. GWB fought this from happening in the 00s, applying terrifs on Japanese steel. Personally, I'm disappointed.
Same my grandad used to work for them in Gary IN. Interesting development
If you thought 40 hrs a week was bad, these guys will probably expect that in 3 working days
Off topic, But this sounds like the current Chinese Communist party approach to business .
Do you recall taking macroecon in undergrad? My favorite takeaway from that course was the idea that the whole world benefits from the distribution of supply chains based on comparative advantage.
Effectively in the span of one week,
- James McFreedom makes all his clothes, but only makes 2 shirts cause he is bad at it and has other priorities.
- and Amy Patel makes all her clothes and makes only the 7 shirts she needs cause she is good at it, but has no need to make more despite having nothing better to do.
- and Ming makes 5 shirts cause she is mediocre at it but has too many other things preventing her rom making enough shirts for the week
- and Yuri being a paraplegic who can't make any clothes , but only buys from his best friend James taking one of his only two shirts.
You would instead
- Stop James from making shirts so he can do other stuff that may alleviate the load on ming .
- Stop Yuri from only buying 1 shirt from James and let him do other things with his time while getting shirts from Amy and ming
- Shift most production of shirts to Ming who now makes 21 shirts and sells the 14 she doesn't need
- Shift some production to Ming so she makes all 7 shirts she needs and one spare.
You effectively move from an inefficient system that produced 14 shirts to one that created 29 shirts and freed 2 more workers to do something more productive with their time.
I personally see real world trade in the same way. I fear the world is shifting back to its inefficient and protectionist past from the 1800s and early 1900s. A fear of return to an unproductive world. Effectively the whole world will suffer if billy bob in Montgomery stays in his steel plant and doesn't move on to opportunities only he can access at alaBama State that his counterparts in Tohoku prefecture can't.
If the big concern is the time and money it takes Jim Bob to transition to an exciting new career in ABC proffession, then it would be feasible to tag a onetime free to the merger of the steel plant with a foreign opertaor in exchange for long term acces to US markets. The fee would then be used to hasten Jim Bobs transtion to making flux capcitors at UBama without depriving the world of the greater production that the global supply chain would offer
Breh, the illusions of comparative advantage are debated at a level far above my pay grade. Your analogy doesn't take into account any of the real-world problems that come from different countries doing very different things with labor, resource extraction, manufacturing, etc., not to mention the transport.
The Myth of Comparative Advantage
Today's "free trade" is not only the last remnant of laissez-faire -- it is its least deserving remnant, full of wholesale foul play, deception, currency manipulation, predatory techniques, and other violations of its rules.
The Folly of Free Trade
Any manager who tries to create a strategy out of worn-out clichés and unexamined nostrums is dismissed. Yet in the United States and other Western countries we have grown comfortable with the government following outworn nostrums about free trade. We have elevated the economic theory of free...
hbr.org
Personally, I have to admit that I don't understand economists at a level to guarantee whether comparative advantage still works to some degree despite the obvious false assumptions noted in those papers, or whether the distortions are so large that it doesn't work at all. I'm biased, so I'm going to downplay how much it works if it does. But I believe the issues with offloading major economic tasks to other countries are so large that we should be reluctant to do it regardless of whether there is some comparative advantage or not.
1. The classic, obvious argument is that big issues happen when international supply lines are disrupted. It's always been assumed that war is the big worry, but we were recently able to see that even a relatively weak pandemic could cause supply line disruption, and a future pandemic could be much, much worse.
2. More importantly to me, comparative advantage ignores the relational aspect of actually knowing the workers involved in the process. People care about improving conditions for Pennsylvania coal miners because they know Pennsylvania miners. These same people don't give a flying fukk about African miners. So there is comparatively little pressure to improve conditions for Africans, compared to Americans. You could claim that Africans will be in charge of improving conditions for African laborers, but that is made more unlikely due to power imbalance that results from foreign funding, especially in non-democracies. Africans lack the same degree of power to insist on better labor conditions for other African, both because they don't live in democracies and because the real power and pressure for the product comes from overseas, which they have little power over.
3. Similarly, just as exporting manufacturing overseas results in no oversight for labor and thus labor abuses, you can introduce abuses over every other aspect as well. Animal abuse is more likely if the process isn't in-country. Environmental damages are more likely if the process isn't in-country. It's harder to evaluate whether their food processing plants are clean, it's tougher to tell whether they're shooting their fish up with too much antibiotics. Whatever abuse you can possibly imagine, that abuse is more likely at an overseas factory you can't monitor than it is at an in-country factor you can....ESPECIALLY if keeping costs low is a heavy pressure, which under comparative advantage it by-definition must be.
4. The costs of transoceanic transport are ignored. And I'm not just talking about the financial costs, I'm talking about the hidden costs, the air pollution and oil spills and propping up of the oil market which funds tyrants and terrorists in multiple nations.
There are more objections but this is already getting lengthy. Keeping industry local allows us to see what is actually going on in industry and therefore make the best decisions for both the consumer and the worker. It keeps us in touch, protects our supply lines, and reduces the potential for catastrophic international problems.
FukkaPaidEmail
Retired Hoodrat whisperer
I don’t get the pearl clutching .
This was either going to end up with CLF or Nucor having a chokehold on steel or what we have now with Nippon .
Nothing good was going to come out of this .
This was either going to end up with CLF or Nucor having a chokehold on steel or what we have now with Nippon .
Nothing good was going to come out of this .
Mister Terrific
It’s in the name
The majority of Japanese politicians are bought and sold like ours are. They have a scandal every week here. Even worse because their entire government is basically controlled by crazy Christian fundamentalists that aren’t even Japanese
Unification Church - Wikipedia
Imagine if Obama got assassinated and it came out he was a member of a Christian sect that believes Jesus was Mexican and they controlled the government. That’s what happened with Shinzo Abe. Japan is essentially a one party dictatorship masking as a democracy. The LDP (liberal Democratic party) was basically created by the CIA to stop the rise of communism. They have been in power every year save like a couple on the 90’s.
CIA activities in Japan - Wikipedia
Their prime ministers rock approval ratings that would get a U.S. president impeached.
Japan IS where America is headed if we don’t shape up.
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So weird how close the two countries are now.
I guess if a mf whooped your ass so bad that your great grandkids have nightmares in their DNA.. I guess you can't do shyt but be their friend after that.
Which government do you think cares more about it's citizens: America or Japan?
