Posted by Brendon-KS on June 24, 2018 at 04:52:44 from (63.245.145.35):
In Reply to: TRADE WARS posted by Al Baker(pumpman) on June 23, 2018 at 10:15:27:
Another huge factor in all of this is the effect of modern containerized shipping to the global economy. Before this the cost of shipping products long distances essentially created a tariff automatically due to the high transportation cost. It was better for a manufacturer to buy from local suppliers because even though less expensive sources were out there it cost too much to get their product to his dock. However, in the last few decades the near universal implementation of containerized shipping has for the most part eliminated this cost disparity, especially for the transporation of smaller items. The per-piece freight cost difference for a manufacturer in the USA to get a truckload of parts from halfway across the country compared to a truckload of parts from the other side of the planet is very small. This of course has lead to an increase in sourcing parts from regions where the production costs are lower, even if it is on a different continent.
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