Topic List | Page List: 1 |
---|---|
Topic | Freedom, Liberty, Ron Paul - New Domains of Freedom [dwmf] |
foolm0r0n 03/02/18 8:44:47 PM #487: | Jakyl25 posted... But then the tariff increases the price of British sweaters to $15, and now the American sweater market can exist and sell sweaters at $10 and make money like the British sweaters used to to. The forced increase in price of the BritSweats opens a window for being able to profitably undercut them. It's more like: Brits can make sweaters at $10, Americans can make sweaters at $14.99. It's obvious that everyone would just buy Brit sweaters at this point. But if a tariff is introduced that makes Brit sweaters $15, then the American sweater at $14.99 is the obvious choice. The American $14.99 sweater was always there, as an invisible potential option. The tariff doesn't change that at all. All it does is make the $14.99 sweater economically viable, and thus the production will actually happen. --- _foolmo_ 2 + 2 = 4 ... Copied to Clipboard! |
Topic List | Page List: 1 |