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Submitted by Gerald Kapp on
This is very true, and for all countries - including the USA, where almost all smaller products are today imported from mostly China. It shows that without a certain regulative (full cost accounting) many countries cannot build up their own industries, because the initial product quality, patents and economies of scale are against this. E.g. Germany could not have build-up its industries in the 19. century against the dominating British producers without the initial protection with import taxes. The additonal costs for the importing country (unemployment costs, pollution cost from long transports, empeded development costs, etc.) need to be added to the cheap import prices. This is fair to protect the weaker partner until it becomes strong enough to compete successfully. Free trade only makes sense between equal parties.