From: "Robert G Lewis" 


"Geo"  wrote in message
news:41a27f2a$1{at}w3.nls.net...
> "Adam Flinton"  wrote in message
> news:41a1cc6f$1{at}w3.nls.net...
>
>> So how do you drive to work?
>>
>> Or even send a truck to pick up these Chinese manufactured goods from
>> the port?
>
> I don't think I explained it right.
>
> US goods, 1 part fuel cost, 4 parts raw materials cost, 8 parts labor
> cost,
> 1 part transport to use market cost=14
>
> Chinese goods, 1 part fuel cost, 4 parts raw materials cost, 1 part labor
> cost, 4 parts transport to us market cost=10
>
> Now double the price of oil and you have
>
> US goods, 2 part fuel cost, 4 parts raw materials cost, 8 parts labor
> cost,
> 2 part transport to use market cost=16
>
> Chinese goods, 2 part fuel cost, 4 part raw material cost, 1 part labor
> cost, 8 part transport to use market cost=15
>
> it's probably not a good example but it should give you the basic idea,
> labor has become less of a percentage of the overall cost so cheap labor
> is
> less of an advantage.
>
> Geo.
>

Actually that's not a bad explanation. I had not thought of it in that way.
Do you think that US goods are better than the cheaper Chinese made goods ?

Bob Lewis

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