reply to post by Rocketman7
So we are all about 'just in time' economics. And I don't think we need to discuss the dangers of just in time economics since we should know
those, but for those who don't, the danger is that since you have no inventory if the trade route is disrupted then you have big problems really
quickly.
So security is important. So to insure the trade route stays open, we have the S.C.O.
They can go around embargoes.
America is often not able to prevent big business inside of it from steering the nation into situations where they can try to control trade. The big
business interests will place embargoes and use all sorts of strong arm tactics as a tool of business.
We like hardball but we need our goods on time at a reasonable price.
And this world conference is designed for the second world. You notice its G20 not G7.
This is an opportunity for the second world, lets say GDP per capita that is similar to Iran and Lebanon working with countries which have a very low
GDP per capita of around than $5,000 .
So there is still a gap there between Iran and lets say Syria or Egypt or Iraq as an example.
But its not insurmountable. Its actually advantageous.
The next jump which is to the first world, well we are just in another league and the monetary amounts would be hugely differential. Canada 50,000 GDP
per capita, America 48,000, Norway? Don't even look at Norway. 85,000 or something.
We are interested in point of sale. We want next day delivery from anywhere in the world of course.
And we want quality. And we want a good price. But a good price to us, is not the same price that Iraq could afford from the same manufacturer. But
the manufacturer can still sell more products if he taps the Iraq market too.
And if he finds that the market is larger and easier to deal with, he might favor doing business with Iraq rather than do business with America lets
say. And just because Iraq's GPD per capita is 4,800 does not mean that in that country there isn't a market where they are making much more than
that. So they could be making a huge profit even a first world country if within that country there is still a good market.
They might even be a second stage middle man. Where it has gone to Syria been marked up then gets to Iraq and is marked up again, but when it gets to
the first world, it is still a good price to us.