Posted by Brian G on 02/08/2016 17:33:54:
Posted by Ajohnw on 02/08/2016 16:29:59:
That is down in part to how shipping from outside of the UK is handled Michael. Most countries have agreed that their main national domestic carriers will deliver for free. …
Hence we can buy something from China for less than the UK shipping would cost. Only trouble is No VAT + low wages + no duty + low shipping costs = No British industry.
Brian
Yes and have the UK use far eastern working practices, labour costs, working conditions and living standards competing with them wouldn't be a problem.
Curiously though labour costs are only a small part of the equation. A more serious aspect is that manufacture of any sort requires more capitol and risk so from a money making stance it makes more sense for some one else to do that and just buy and sell things. The percentage return is higher. Or be a service of some sort of course.
From a manufacturing point of view the size of the home market also has a considerable effect at leas initially as companies grow.
Whoops forgot to mention that we had best re open our copper, tin and iron ore mines as well. The Romans may have left some of the first 2. Not sure how much of the last one is left. There still is a bit of gold mining going on. Not much though. A lot of it is people on holiday in Scotland.
John
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Edited By Ajohnw on 02/08/2016 19:43:48