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A Bank of America Merrill Lynch survey of fund managers forAugust showed a net 20 percent of respondents would overweightthe European market over a 12-month period, the highest reading in over six years. That made investors' top choice over thishorizon Europe, ahead of Japan.
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STMicroelectronics NV, Europe's largest maker ofsemiconductors, said that in the September quarter it saw softdemand for chips used in high-end smartphones in Asia and itpredicted little or no revenue growth in the December quarter.
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The main thing I take from this is that the authors don’t seem to understand what comparative advantage is. (Hint: It’s NOT the same thing as competitive advantage.) Comparative advantage refers to the ability to produce at lower opportunity cost. There are two ways to have a comparative advantage- be good at producing something or be bad at producing other things. The Korean comparative advantage that the authors refer to is likely a little from column A and a little from column B. The authors also seem to be using “economy” and “producers” interchangeably, as in “And Econ 101 never explains how foreign mercantilist practices, like those China is embracing, can hurt the U.S. economy.” In reality, the economy consists of both producers and consumers, and consumers benefit from the cheap stuff generated as a result of these policies. (Believe me, there are plenty of reasons to be wary of China, but “they’re sending us cheap junk” is not at the top of that list.) I’m not even sure what to make of the last paragraph except to point out that the gains from trade don’t really rely on WHY a particular nation has a cost advantage.
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"Garcia is a very young, five-tool player who already has spent time in the major leagues," Hahn in a statement. "Our scouts are extremely optimistic about his future and view him as a potential impact talent for many years to come." |
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