Hasler wrote:Well lets see china and japan do a large amount of buisness with the US if their business alls of us companies move back into that market. Europe buys alot of Asian goods also another source for the US to take.
China forces down prices on goods big time. If U.S. companies were to take over the marketplace, they would have to raise prices on these goods in order to succeed. Furthermore, the loss of most of our pacific ports would cause worldwide disruptions in shipping of goods and raw materials, and would force prices to go even higher. Basic economics shows that higher prices equals lower demand, and forces firms out of business.
Europe already faces bugetary problems (ie France and Germany) and needs solid economic growth in 2003 and 04. Any war between the US and China will disrupt trade, driving down revenues from European companies, force the EU to spend more in support of the US war (Darn NATO treaty) as well as scare away investors worldwide. As said before, loosing all assets your company currently has in Asia isn't going to help the bottom line, and these days everyone has assets in Asia, or Asia has assets in them.
The hit will end up leading to a much larger gain.
Bullshit. It's in the U.S. best interest to see free trade with expanding economies overseas, since that allows us open markets for our goods and services, and offers our consumers lower prices as well. Furthermore, China's policy of propping up mismanaged state-run firms will eventually leave those firms open to being picked up cheap by US companies, allowing us access to over a billion consumers.