tag:blogger.com,1999:blog-4900303239154048192.post3582875487632930462..comments2024-03-06T06:34:42.881-05:00Comments on EconoSpeak: 60% of Chinese exports to the US are from foreign-owned corporationsUnknownnoreply@blogger.comBlogger12125tag:blogger.com,1999:blog-4900303239154048192.post-37130735468500333132010-03-16T17:53:22.064-04:002010-03-16T17:53:22.064-04:00hello,
I need some help: I am looking for the perc...hello,<br />I need some help: I am looking for the percentage of the American exports carrying the label of a foreign-owned company?! like the 60% of chinese exports you mentionned...<br />thank you very much!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-67840991002699276642009-06-02T23:12:04.274-04:002009-06-02T23:12:04.274-04:00This post reminds me of an examination of who gets...This post reminds me of an examination of who gets paid what up the value chain for an ipod. <a href="http://angrybear.blogspot.com/2007/07/dark-matter-and-ipod.html" rel="nofollow">PGL posted about this on Angry Bear</a> back in July 2007. Quoting from a study by Linden, Kraemer and Dedrick, that post said: <i>"Based on these values, Apple’s gross profit on those units would be $80, which is 36% of the $224 estimated wholesale price. This $80 profit is greater than the price of any single input, so it is definitely greater than the value added for any of its partners"</i>.<br /><br />So the income to manufacturers in China is much less than the wholesale cost of the ipod in the US. To the extent that the manufacturers are foreign-owned (ie. not Chinese-owned), the amount paid to Chinese would be less again - the foreign-owned manufacturers would have to pay interest and maybe license fees to their "parents", and that would come off the top. <br /><br />But then there is the whole issue of transfer pricing. Does Apple, for instance, ascribe more of the costs of the ipod to China than China really gets? This is where the issue of how much US Treasury debt is held by MNCs becomes really important, because to the extent that MNCs hold this debt China doesn't. So for example Trucker's problem with China's choice to hold its profits in US dollars rather than spend the money in China would diminish.gordonnoreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-12946139589656815042009-05-31T01:12:36.023-04:002009-05-31T01:12:36.023-04:00Trucker
I need more time to respond to your commen...Trucker<br />I need more time to respond to your comments. but I'm leaving soon for the city and will be away for a few days. I'll try to reply when I get back.<br />BrendaMyrtle Blackwoodhttps://www.blogger.com/profile/07427043367624101075noreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-30823148671199768442009-05-30T23:58:11.566-04:002009-05-30T23:58:11.566-04:00Trucker:
Do not let "slave labor" blur your visio...Trucker:<br /><br />Do not let "slave labor" blur your vision as direct Labor cost as a percentage of the costs of manufacturing is 10% of the cost of manufacturing or less. While it is a factor, it is not the same or as big as Burden/Overhead, which is ~30%. Companies move overseas for a # of reasons of which Labor is a part and Burden the largest reason.run75441https://www.blogger.com/profile/03790826995006015721noreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-64925511426953895212009-05-30T12:17:55.241-04:002009-05-30T12:17:55.241-04:00Brenda:
Great post and footnotes on Trade, MNCs, ...Brenda:<br /><br />Great post and footnotes on Trade, MNCs, and China. Just got down going through them all and they answered many questions I had about certain issues.run75441https://www.blogger.com/profile/03790826995006015721noreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-87460880850875022772009-05-30T11:12:58.079-04:002009-05-30T11:12:58.079-04:00I'm not quite sure what this article is trying to ...I'm not quite sure what this article is trying to get a handle on. The article seems to be trying to make American offshorers and outsourcers and other nations offshorers and outsourcers the bad guys in the trade imbalance. That is probably a fair charge but for the question that was asked in the original post about the source of the "liquidity".<br /><br />Surely we must all understand that this "liquidity" is American dollars and the source is the "spend and no tax" government along with the "leverage and more leverage" financial sector. The "liquidity" (fiat and bank money) is supplied by borrowing it into existence.<br /><br />The money then flows to China because their costs of manufacture are based on slave wages. I will not point out that Malthus wins this round in the discussion, but I will say that the accumulation of all of the "liquidity" in the form of Chinese owned T-Bills is the "fault" of China and the Chinese government while the source of the liquidity is our own government and our own financial sector.<br /><br />HOWEVER!!!<br /><br />No one forces China to "save up" all the created money in a pile of interest bearing dollars called T-Bills. They have the labor force to build additional capital such as roads and bridges and schools and hydroelectric dams and algae farms and much much more. Yet they choose to not spend the money and to instead hoard it in T-Bills. They could just hand it out to the Chinese citizens and thus increase the real wages of the people of China. <br />But noooooooooooooooooooooooooo...<br />They wish to gain control over the US economy. I say this because there is no other rationale for saving up all that dough as opposed to spending or investing it. They want to "expand China" as a means of helping the huge population of China????<br /><br />This gets us into "reality economics" where we observe that the ratio of population to natural resource is a true limitation of quality of life.<br /><br />The point I am trying to make here is that no one forces the Chinese government to shortchange its citizens and "save up" all those T-Bills and keep buying even more of them. And if China were to _spend_ that money then the trade imbalance would be far less. This point has only to do with the T-Bills controlled by the Chinese government and nothing to do with any T-Bills that are owned by MNC's.<br /><br />The T-Bills owned by the MNC's are a problem also in that they represent a power transfer from the producer class to the owner class and again it is a power seeking move. Governments that are not corrupt will raise import tariffs and other taxes to stop this crap. Governments that are corrupt will raise interest rates to stop it, thus transferring even more power to those who have collected all the money. This is an observation in "reality economics" as opposed to "noeconomics"TheTruckerhttps://www.blogger.com/profile/10346127768102862741noreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-26231253198831997812009-05-30T10:20:43.986-04:002009-05-30T10:20:43.986-04:00I checked Wal-Mart's 10K and it does not report ho...I checked Wal-Mart's 10K and it does not report how much they sourced from China. Last article I saw that speculated put the figure near $30 billion but I've heard that they were thinking about buying $50 billion in goods from China. Of course, we buy over $300 billion in goods from China so Wal-Mart may be around 15% of the total action.ProGrowthLiberalhttps://www.blogger.com/profile/17138489390594441753noreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-44027750040030614782009-05-30T07:46:12.215-04:002009-05-30T07:46:12.215-04:00Sorry, the full title with link is:
A New Perspec...Sorry, the full title with link is:<br /><br />A New Perspective on Global Imbalances: the Role of MNCs<br />Asian Shadow Financial Regulatory Committee<br />Statement No. 8<br />Hong Kong, July 5, 2007<br />www2.hawaii.edu/~fima/ASFRC/HK_Statement.pdfMyrtle Blackwoodhttps://www.blogger.com/profile/07427043367624101075noreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-88142677463589092912009-05-30T07:40:33.482-04:002009-05-30T07:40:33.482-04:00Shag from Brookline said...
What portion of th...Shag from Brookline said...<br /> What portion of the 60% statistics does Wal-Mart represent? What is the percentage of US based manufacturers in China whose products are exported from China?<br /><br />I'm researching this. I suspect that the real figures may never be found with respect to the true picture of trade between China and other nations. There doesn't appear to be much in the way of transparency.<br /><br />Meanwhile, you might want to check out this: <br /><br /> <br />A New Perspective on Global Imbalances: the Role of MNCs <br />Statement No. 8 <br />Hong Kong, July 5, 2007 <br /> <br />Abstract <br /><I>The global imbalances that threaten to provoke major international trade conflicts may be a statistical artifact, arising from an outmoded accounting for international trade that ignores its <br />present domination by multinational corporations. Regional governments should update their international accounting; the first step would be to mandate the disclosure of data on the ownership and control of multinational corporations and the terms of their transactions amongst subsidiaries....</I>Myrtle Blackwoodhttps://www.blogger.com/profile/07427043367624101075noreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-86113156202153772732009-05-30T07:36:44.765-04:002009-05-30T07:36:44.765-04:00Thanks, PGL.
After umpteen edits of this post tod...Thanks, PGL.<br /><br />After umpteen edits of this post today, the version there now may be the final one. Phew!<br /><br />Now, if I received an income for my rantings I might not throw these out into the blogosphere so quickly and carelessly!Myrtle Blackwoodhttps://www.blogger.com/profile/07427043367624101075noreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-18675517950303802812009-05-30T07:36:03.022-04:002009-05-30T07:36:03.022-04:00What portion of the 60% statistics does Wal-Mart r...What portion of the 60% statistics does Wal-Mart represent? What is the percentage of US based manufacturers in China whose products are exported from China?Shag from Brooklinehttps://www.blogger.com/profile/07312591102812315460noreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-5947551359767178732009-05-30T05:54:41.633-04:002009-05-30T05:54:41.633-04:00One footnote to the 60% statistics. While some US ...One footnote to the 60% statistics. While some US based manufacturers "purchase" goods from related party manufacturers in China, companies such as Wal-Mart are actually purchasing goods from 3rd party Chinese manufacturers via a related party procurement company. Not that this absolves them from the sweatshop charge (always low wages) or it fundamentally alters their ability to abuse transfer pricing to rip off the US Treasury.ProGrowthLiberalhttps://www.blogger.com/profile/17138489390594441753noreply@blogger.com