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the benefit the consumer is getting in this whole equation.  he/she is buying goods at, say 10--30% lower than they would otherwise get them.  And I think we've learned from the US auto industry's collapse with Japanese competition, that these goods can be great quality,,,with cars, better.

Second, I don't know if you meant your comment on the "middleman" to be pejorative or not.  But the traders, the distributors, the marketeers, the transportation, the Internet that gives more visibility to smaller and foreign producers, etc. etc. etc. are critical to these products arriving in the US and Europe.  They are not production costs, but there are lots of real costs in there.  True in the beginning there may be some nice profit margins, but soon other suppliers and other channels of distribution start competing, and prices and margins fall.

by wchurchill on Tue Nov 22nd, 2005 at 12:51:51 PM EST
[ Parent ]
Please don't read any value judgements into this post of mine, especially since I use the neutral term intermediary instead of the loaded middleman (nobody talks about cutting out the intermediary).

I also make a point about the effect that adding a layer of intermediaries has on the GDP.

guaranteed to evoke a violent reaction from police is to challenge their right to "define the situation." --- David Graeber citing Marc Cooper

by Migeru (migeru at eurotrib dot com) on Tue Nov 22nd, 2005 at 12:58:25 PM EST
[ Parent ]
clarification.  It was the layering comment that made me ask.  but I understand now.
by wchurchill on Tue Nov 22nd, 2005 at 01:16:51 PM EST
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