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Originally Posted by Show Me the Wire
Or it could be the exemption from high tariffs coupled with VAT and other taxes which would increase the product price by 50%.
BTW Hamilton who actually put our financial system together favored tariffs, protective tariffs..
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It could.
But the more likely reason(s) are the ones I mentioned. Its a booming market and proximity means less cost as well as cheap labor. Its the exact same reason Japanese and European auto manufacturers are coming here. It has nothing to do with tariffs.
As far as China they have slashed their tariffs over the past few decades. Emerging markets trigger investment and they have been much smarter than the Russians after perestroika and the fleecing they took.
China is more open now that ten years ago. Twenty. Ect.
As far as Hamilton tariffs were used as the main revenue stream for nation's at the time so it's hardly unusual. Income taxes as we know them didn't even exist yet. We aren't talking about a balance sheet though we are discussing punitive tariffs.