Comparative advantage is nice in theory, but in a world where powerful global corporations are using every strategy imaginable to maximize their profits and powerful governments are strategically employing market access to develop their economies, it’s just theory.
Economics writers like those affiliated with Magazine surely are sophisticated enough to know this as well. So why are they so eager to trot out such economic nonsense?
Perhaps because so much profit is at stake that those who pay their salaries – and who have also put many academic economists on retainers – prefer that they mislead the public with simplistic economic theory that appears to justify these profits rather than to tell the truth.and
Many of the world’s most successful economies – among them, China and Singapore – owe their successes in part to their conditioning market access on certain kinds of jobs and investments, including research and development. That’s the way they have come to use global corporations, rather than be used by them.In other words: resist corporate control by restricting corporate access. That's the NO711 program in a nutshell. He's thinking of restrictions from above. We're thinking of it from the local level.