Posted on 12/30/2014 5:33:44 AM PST by SeekAndFind
Coca-Cola's "Share a Coke" campaign is the latest effort by multinational companies to de-emphasize their global reach. By replacing the logo on its cans with colloquialisms and common names in markets it serves, one of the world's most recognizable brands is hoping to look and feel a bit more "local."
Coke's marketing strategy is just one example of companies responding to growing public sentiment that buying local is synonymous with doing good. Indeed, more than 150 groups representing more than 30,000 U.S. businesses are promoting ‘buy local' campaigns with slogans like "Don't Buy from Strangers, Buy from Neighbors."
Of course, suspicion of foreign goods is nothing new. Phrases like "Made in China" have long been associated with poor quality. But when did shunning foreign made products become a matter of conscience?
The truth is, the growth of international trade over the past 30 years has sparked a revolution in living standards for hundreds of millions of people around the world. Stigmatizing global trade threatens to undo hard won gains.
History and research show that as trade increases, poverty decreases, and China is a prime example. Since 1978, when the country opened to foreign investment, China has grown to become the world's largest trader - measured by total imports and exports. The results have been striking.
In 2012 alone, average factory wages in China rose 14 percent. In manufacturing, specifically, worker wages have increased 71 percent since 2008. Over the last thirty years, Chinese families living in extreme poverty dropped from 84 percent to under 10 percent. To put that in perspective, 680 million Chinese people-over twice the entire population of the United States-are no longer living on the edge of catastrophe and dying from preventable problems like diarrhea and malnutrition.
(Excerpt) Read more at realclearmarkets.com ...
Interestingly enough, Ronald Regan engaged in a little “protectionism” on behalf of Harley-Davison when he imposed an import tariff on Japanese made bikes of over 750ccs.
It was a specifically targeted tax that not only helped Harley get back on their feet but encouraged Japanese manufacturers to open factories here to get around the tax.
It was a smart move. Regan knew better than impose tariffs across the board and found a way to target a specific product that could end up benefiting everyone. Michael Reagan points out that his father was a big fan of free trade but knew better than to give the store away.
Read on, the article also explains why it’s ultimately good for America.
No, it doesn't explain why it’s ultimately good for America. It does say we should feel good about lifting China's poverty rate from 84% to 10%.
In order for globalization to be good for America, our poverty rate must first be driven down to the 84% level (or whatever the global level of equilibrium is), then America will benefit equally from globalism.
Amen.
No, our taxes are too high. If the Chinese companies were taxed as heavy as we are, they wouldn’t be able to compete with us. The BOTTOM LINE. OUR TAXES ARE TOO HIGH TO COMPETE WITH THE THIRD WORLD. If it wasn’t China, it would be another country. If the ding bats in Washington will only realize this, we’d be able to compete with the rest of the world.
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