The economics of it is US taxes and tariffs on imports and exports. (This is an attempt at a very simply stated explanation to keep it basic.) Also involved as sanctions/subsidies put in place to politically "fight" other countries without getting into fisticuffs.

Whether you are for them or against them (trying not to get into any anti-BB discussion), the government uses such to protect "American" interests at home and abroad. But the addition of such on an import or export is basically to bridge the gap in the price so that "American" companies are not forced out of the market (ie. loss of jobs, american tax money from those companies, etc.).

This is happening on many, many fronts, even with our "friendly neighbours" to the North. Feel free to see any of these items discussed by searching and reading up on WTO and others. Look at the steel industry, sugar industry (why CAD coke is better than what we get here in the states, especially here in WNY, a stone throw away), just about any industry.

Feel free for the other economists to correct me if I'm wrong or add anything else. I am just trying to give a basic answer. Too bad too about the dollar, since the annual Tremblant trip looks less appealling with the "new price." That SQR ECU is going to look pretty bad come the spring as well (to tie it back to be Saab-related!).

Sean

posted by 65.202.26...

• Dollar down? (+), Vlad, Thu, 2 Dec 2004 06:32:36
  • It's hard to export manufactured goods when...., zeke, Thu, 2 Dec 2004 14:48:29
  • More to cost than purchase price, Ari , Thu, 2 Dec 2004 08:17:28
    • OK, Chevy Cavalier then (+), Vlad, Thu, 2 Dec 2004 09:41:41
      • In Europe, everything made in USA is big $$$, Street, Fri, 3 Dec 2004 06:39:20
      • Re: OK, Chevy Cavalier then (+), fsik, Thu, 2 Dec 2004 13:22:06
        • But wouldn't the Kia cost 24k with 100% duty? (+), Vlad, Thu, 2 Dec 2004 14:08:24
          • Re: But wouldn't the Kia cost 24k with 100% duty? (+), fsik, Thu, 2 Dec 2004 22:27:10
      • Why would anyone buy a Cadavalier? n/m, Noel, Thu, 2 Dec 2004 10:19:23
        • Re: Why would anyone buy a Cadavalier?, Scott Paterson , Thu, 2 Dec 2004 11:51:43
          • I know, I know, I'm just being cynical! ;^), Noel, Thu, 2 Dec 2004 13:18:31
            • Cobalt?, Erik W, Thu, 2 Dec 2004 19:39:10
      • Cavalier... is it already there??, JimBlake , Thu, 2 Dec 2004 10:11:53
  • Very simply stated (not full details) - tax & tariffs.., elliott, Thu, 2 Dec 2004 07:40:01 <-- Viewing This Message
    • CDN Coke, Trev, Thu, 2 Dec 2004 12:06:43
      • Re: mmmm... true, pure cane sugar... I feel like Homer, elliott, Thu, 2 Dec 2004 12:31:28
      • Re: how about Bolivian/Columbian coke? n/m, t_mokes, Thu, 2 Dec 2004 12:27:42
        • that is good too, steveC, Thu, 2 Dec 2004 18:14:57
    • BTW - The US isn't the only one to do this... nm, elliott, Thu, 2 Dec 2004 07:41:17
  • Cheap is a relative term, what do you suggest ...., TKC, Thu, 2 Dec 2004 07:38:46
    • Re: also you got to consider the loss of import goods, t_mokes, Thu, 2 Dec 2004 10:55:41
      • Does not compute in global economy, a lot things...., TKC, Thu, 2 Dec 2004 18:09:46
        • Re: Does not compute in global economy, a lot things...., t_mokes, Fri, 3 Dec 2004 08:15:34
          • Many countries have their monetary systems pecked..., TKC, Fri, 3 Dec 2004 12:26:13
            • Re: you're right..., t_mokes, Fri, 3 Dec 2004 14:40:46
  • Re: Dollar down? (+), compaqted, Thu, 2 Dec 2004 06:49:59
    • Re: Dollar down? (+), Noel, Thu, 2 Dec 2004 08:33:47

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