| KingofTrolls said: Well, the conclusion followed by this logic is 95% of world GDP shall be consumed in China/India/IndoChina/Africa region. It's not happening because in capitalism u have to get money to purchase. Chinese Indian African Hispanisc etc people have simply not eunogh money to pay enough for imported goods. For example Poland - people here will purchase shittons of PS4, games,music etc but they simply dont have money to justify purchase. 2. Yes, Chile is very interesintg market to invest. I have watched webinar of Polish traders and they recommend ed inChile to invest. Kinda like Singapore. |
You're correct in saying that Americans have more money than all those places. But the numbers in a lot of them help to partially offset this. China is today one of the world's largest luxury markets. In a lot of segments, it's more important than the US. Sheer numbers.
I'm not saying those markets are better than the US (300M people with high income). But if Trump puts taxes in Mexican imports so they become more expensive than US-made products, selling stuff to the US won't be an option because people won't pay more just because something is made in Mexico. So Mexican companies will have the option of either going bankrupt or diversifying their exports. Other countries may have lower taxes that allow Mexican products to be more competitive or Mexico may sign free trade deals.
Right now, Mexico isn't activelly pursuing these deals with a decent effort, because they have a huge, high-income market available that happen to be close to them and has free trade deals with them. If Trump wants to do what he claims, he will have to raise taxes until Mexican products become a bad option to Americans. So it's not a matter of option or finding a better partner than the US, it's basically a forced change.
Chile is doing great. Really. Their governments are keeping consistent economic plans (even when left-wing governments are replaced by right-wing ones or vice-versa). They were smart in staying away from Mercosul. Like Singapore, they focused on increasing the economic liberty. That's why I'm so sceptic about Trump, he is against a free market.
Brazil is in serious risk of losing the regional dominance if it keeps insisting on being inneficient. With a bit of luck, the government can approve the new labor laws. That and a tributary reform could put us in the same path as Chile.
