Is free trade God’s blessing?
Is free trade God’s blessing?
We have said that in the case of migration there are two separate issues, filling job vacancies and helping fellow human beings. Ultraglobalists put these together in a package. We deal with them separately. Generally ultragloblists package things. They are either simpletons or take you for simpletons. We keep repeating it. Do not trust them.
We also said that when we have very large economies like USA’s or China’s an argument for relative autarky could be made. We talked about a push approach and transfer of knowledge and expertise. How will this work in Africa when people do not have the money to invest? We do not have schizophrenic approach like ultraglobalists. We do not say on one issue one thing and on another issue the opposite.
American, Australian, Canadian, European companies can invest. Well that is trading someone may say. No, that is not trading. That is foreign direct investment. They can bring profits home. That’s OK. It only takes wire transfer. Money does not come with ships, planes and trucks that burn gas or oil.
Trading is something different than travelling, cultural and scientific exchanges, transfer of knowledge, foreign investment, international athletic events, etch. Ultraglobalists package them together. We deal with each one seperately. Trading involves movement of products from one country to another, it is an export from one country and an import to another.
If an American company makes a factory in Africa with the purpose of selling the products in Africa, it does not involve any trading. Off course, it will not be forbidden to make some exports as well. We have American companies that make factories in China with the purpose of selling the products in USA.
If the products are made in China and sold to USA, that is trading, regardless of whether the company that makes them is Chinese or American. Germans make factories in Mexico to sell products in USA. That involves trading. If they made these factories in USA, it would not involve trading. Products that are made in USA by USA workers are part of USA’s GDP regardless of the where the company that makes them is from.
We are not saying that trading is bad or that it should be eliminated. Ultraglobalists present free trading like God’s blessing on mankind. We are saying that clearly this is not the case. Ultraglobalists say that the more trading the better. We are saying that some trading is good but a lot of trading may not be that good.
Ultraglobalists also like to put you in a black or white dilemma. It is either ultraglobalization or complete isolationism. It is either open borders of completely closed. There is nothing in between. In reality there are very many shades of grey in all instances as we have explained. It’s either completely open markets or fully blown protectionism.
Having open markets could be beneficial. Protecting a sector could be also beneficial. We can have markets that tend towards open but are not completely open. They can be almost open but have with surgical precision certain sectors protected.
We should also distinguish between free trade and trade. In a relative autarky we have less trade. Trade could be free or with restrictions. Free trade does not involve any tarrifs, duties, quotas. Be careful. Ultraglobalists are a very sneaky bunch. To put it correctly some of them are very sneaky and some have no clue whatsoever.