[–] PtCPt 0 points 8 points 8 points (+8|-0) ago
Any company who's primary source of revenue is China-based from the USA today can expect a major slowdown simply due to China's economy retracting in a big way. That's business. The company would then need to find other customers as sources for their product purchases. If they do not, then they face your friend's business of closing down. Come & Go, that's what businesses do, based only on their plans. Poor planning isn't Gov's responsibility as far as their company operations go.
If that business is having your friend close them down, it's too late for any corrections, decision has been made. Whomever their competition is/was now has potential for a boost to their revenues. Hoping they're USA based.
[–] redtoe_skipper 0 points 1 point 1 point (+1|-0) ago
You are making very good points. Trade needs to be viewed from the prospect of risk:
Country risk
Buyer risk
Transport risk.
Should risk materialise: What mitigating solutions do you haven place? Isyour current portfolio diversified enough from a risk concentration perspective.?
[–] dudleydoright [S] ago
The business was making incandenscent bulbs.
[–] PtCPt 0 points 1 point 1 point (+1|-0) ago
Maybe should've mentioned that gov had indeed inflicted market damage to their local market. However, the other day, Mr. Trump reversed all of Zero's restrictions. But, probably too late for that business. Good start up opportunity today.....I hear he may have the equipment to do that.
[–] redtoe_skipper 0 points 1 point 1 point (+1|-0) ago
Mitt Romney was in the same line of business. But the writing on the wall was muted, clear to see for anyone with half a brain in operation mode.
These people create, and make nothing, but parasite on the system.
This is what was done to Post ww-1 Germany, and post ww-2 Germany.
That an enemy is subject to these measures is one thing, to actively promote and earn money by subjecting your own country to it, is straight up treasonous.
[–] redtoe_skipper ago
Tariffs prevent from shipping it back. Local production is the hot ticket.
[–] Hoppinmad 0 points 1 point 1 point (+1|-0) ago
Inoticed on Craigslist people are selling giant pallets of tools for pennies on the dollar. I am assuming this is part of the China overproducing phenomena and they just need to get rid of them to keep the books looking legit. They can keep going and take a loss because of borrowing on fractional reserve.
[–] CrustyBeaver52 0 points 1 point 1 point (+1|-0) ago
I remember back around '90 to '92, Canada used to run a branch plant economy - American manufacturing companies operating in Canada to avoid the tariffs. Canada went free trade with USA, and 9 out of 10 manufacturers pack their bags and left the country. The city I lived in lost 40,000 unionized jobs in two years, which was almost 1/3rd of the total workforce. Those jobs never came back.
Free trade was a very bad deal for Canada, and it is still a bad deal today. The cities have never recovered. From there, things have only gone from bad to worse.
[–] redtoe_skipper 0 points 1 point 1 point (+1|-0) ago
And became good places to dump en masse immigrants from a certain background.
[–] Gitmo-or-Bust 0 points 19 points 19 points (+19|-0) ago
Tell him to hang in there!! He will be dismantling China and sending all that manufacturing equipment BACK to the US in 2020 and beyond
[–] rndmvar 0 points 3 points 3 points (+3|-0) ago
That's provided that the chinks don't try to nationalize it, then smelt all the tools down to shoot at birds and insects when they start starving.
[–] realopticsguy 0 points 1 point 1 point (+1|-0) ago
Where do you think our barbells and weights come from? Old melted down tools from the Giant Leap Forward.