In life we are taught, “Do unto others as you would have them do unto you.” In trade, we are taught the golden rule of non-discrimination.
Chinese New Year celebrations kick off on January 28. Despite slowing growth, Chinese consumers will goose their economy buying new holiday clothes, food and drinks for gatherings, and gifts for relatives for the holiday.
We can – and do – talk about “America trading with China,” and about “Germany having a comparative advantage in the brewing of beer.” The very notion of “international trade” causes us to miss the essential reality of trade, which is always flesh-and-blood individuals bargaining and exchanging with each other in ways that each person judges to be in his or her best interest.
The United States is the only industrial economy to maintain a worldwide tax system, which encourages American corporations to move their headquarters operations out of the country, and discourages them from bringing their foreign-earned profits home for re-investment. The alternatives being considered by Congress could trigger challenges by our trading partners.
If you’re like most Americans, you are more familiar with Davos Seaworth from Game of Thrones than with the little ski town of Davos, Switzerland. But this week in Switzerland, China’s president and a representative from Mr. Trump’s Administration both said they’d like to avoid a trade war.
President-elect Donald Trump has variously proclaimed that he would “rip up” existing trade agreements, renegotiate the North American Free Trade Agreement (NAFTA), and impose a 35 percent tariff on imports from Mexico and a 45 percent tariff on imports from China.
Most good ideas require intellectual property (IP) protection if they are to play a key role in driving customer sales. As consumers, we interact with IP thousands of times every day with little to no conscious thought when we text on our cell phones, slip a sleeve onto our hot coffee cups, notice the style of cars passing on our commute, or walk down the aisle of a grocery store.
Michael Jordan’s exploits on the basketball court were legendary, but the former hoops star seems to be showing that he’s got “game” when it comes to the rules of international trade as well.
Shortly after his election in November, President-elect Donald Trump announced he made good on one of the promises of his campaign – to save jobs at a Carrier plant in Indiana that had been slated to move to Mexico. Trump’s announcement was great news for the Carrier employees who are keeping their jobs but it also perpetuates some misconceptions about where companies choose to locate and why and what it takes to bring back jobs to the United States.