Newsgroups: soc.culture.china
Subject: Re: GATT&MFN and puzzling American policy
From: <SXS30@psuvm.psu.edu>
Date: Wed, 11 Nov 1992 15:23:40 EST
Organization: Penn State University

In article <BxKDIB.9EJ@cs.psu.edu>, jyw@phys.psu.edu (Jin-Yuan Wu) says:
>
>> A naive assumption!
>
>        It is plain, but is not an assumption. It is what we see everyday.
   I called it assumption because it is too easy for everyone to become
   economic expert.

>
>>1)The currency exchange ratio is not "decided" by someone, it has to stand
>>   the market adjustment, People major in economics can answer this better.
>
>        Exactly. Since the market is limited, the currency rate is
>        "adjusted" to its current value. When the market becomes wider,
>        one will see difference.

      So, what's the point here, open all the US market to China?
   As a matter of fact, US market is more open compare it is in China.

>
>>2) Do you know Japaness made goodies sell cheap here in US compare they are
>>   in Japan?
>
>        "Cheap" is measured based on currency ratio also. They sell cheap
>        doesn't mean they loose money.

   I didn't say they loose money. JP's Yuan/US$ ratio can't be considered
  low. It is the US side wonna to push it low.
  I don't understand what point you wonna to make here. Should JP's
  government set the Yuan/$ as 1:1 to be fair?
>
>>3) Most fast-pace economic developed (or developing)countries benefited from
>>   trading with advance country.
>
>        We see this fact long time. We also see negative effects. There
>        should be alternative route, i.e. treading with both rich and
>        poor counties.

   Most poor countries don't have the buy power and maybe a potential
   Closed selfsustain market. BTW, what is the definition of poor country
   I am sure you can sell Sadam a lot of weapon but it's not fair to the
   people in that country.
>
>>4) The main reason of cheap garment is beacuse of low quality., of cause
>>   compitition is high, but goverment usully has quato for each different
>>   country. don't just shop your cloth in W-mart, go to other  place such
>>   as JC Penny or better shop, you will find out why even if you are willing
>>   to lower your price, they may not willing to put your merchandise in
>>   stock.
>
>        JC Penny's do sell Chinese made coats. The impression of low quality
>        of Chinese goods came from the price. The fact is that they get
>        Chinese goods cheap, raise to normal before putting on the shelves.
       I don't think JCPenny's owner were so stupid to lose a chance
      making more money if they can sell "made in china" in higher price.
      The price is decided by consumer, the demand of the product, NOT
      by someone's will. It's the basic law of free market.
>
>>>The treading of a country should have three goals: (1) sell the goods,
>>>(2) sell at good price and (3) buy goods at acceptable price.
>>>With limited markets, one can only sell the goods at very low price.
>>>When the poor countries buy hi-tech products, they have to pay very high
>>>price due to currency rate.
>>
>> Oh? great theory.
>
>        Thank you, but it is too plain to be a theory.

  Boy, You do have a great sense of humour. _0).
>
>        We see both positive and negative part of the current world
>        treading model. There should be alternative model which has
>        smaller negative part. We need better theory/suggestions.
>        Again, comments are welcome.

 The problem of China and Chinese is too many people want to be the
 leader of the state, of the nation, even the world, since they
 believe they know the philosophy of universe.
  Last post on this nonsense topic.