Quote: Originally Posted by White_Unifier
What do you mean by 'open shop'? You mean have a physical presence? Why force a business to work less efficiently? Their business model has advantages over ours and disadvantages. In that sense, we focus less on competing and more on specializing in what we do best. They focus on price, we focus on service and more complex travel plans. A market for everyone.
So you can kinda see where I'm going with this, you are not in an economy shaking business so it is a minor thing like you say. Now let's use Petro's example, let's use Canada and China for an example, Iron ore and aluminum cost the same in it's original state (nothing) and let's say the royalties to extract are the same OK still with me? The costs are the same at this point, let's even say they are both using the same equipment, so the costs are the same at this point let's even add a monetary value at the time let's say $10/tonne.
Now the story is going to change a little let's introduce labour let's say Canada average $30/hour and China $3/hour, both countries having 10's of thousands of workers only you have to add by law 15% more workers to the Canadian workforce for health, safety, and quality control. Canada's steel industry costs 350% more than China to produce the same steel.
Now let's look at the effects on the economies I think we can agree that the Canadian workers have a living wage with purchasing power compared to the Chinese hand to mouth to survive wage. Canadian wages allow the worker to purchase merchandise not essential to life creating more jobs in the service sector including company, group, or personal travel, (see what I did there WU?) does the Chinese wage do the same? Canadian wages contribute a lot back to the Gov. in personal, property, and gst taxes. Now this major and minor contributors to the economy maybe viewed as essential to the National economy in the eyes of the Canadian citizen.
Let's go with your 0 tariff theory shall we? Open our country to a Chinese steel dump we wipe out at minimum 3/4 of the Canadian steel economy costing 10's of thousands of jobs and a major blow to the over all economy. While Chinese workers are not only still working hand to mouth but might be looking at a wage reduction due to India steel industry is only paying $0.50/hour
Kinda get what kind of tool a tariff can be to the local economy?