USA's trade deficits of goods and costs per units:
“Economies of scale” are particularly higher within mass produced or mass delivery of goods and services. Due to foreign producers of less expensive steel, USA's production of steel had to be reduced, further increasing the cost per ton of USA produced steel; which in turn increases the price advantage of imported steel and additional rounds of increasing per unit costs of USA steel.
While USA steel production is being reduced, the costs of USA manufactured items using steel are also being increased; those producer's costs were already at disadvantage due to imports from lower-wage nations, they also had to reduce their production and the further price increases of their products naturally led to further production reductions or entire terminations of USA manufacturing sites.
Economies of scale concept is not limited to production of metal or plastic products, or only products of goods, but is also a consideration within producers of service products. It is of importance to the delivery of utility services or transportation of cargo or people. These are performed by many enterprises that directly or indirectly support producers of USA goods and service products and effects their costs per units of production.
When producers of USA service or goods products' cost per units are increased, those increases are not only passed on to USA consumers but additionally directly and indirectly to all other USA producers that they serve; due to inter-relationships between USA enterprises and the reduction of USA goods production due to imports from lower-wage nations, consequentially further increases imports price advantages over USA products.
I'll further discuss trade deficits detriment to our nation's GDP within the next post.
Respectfully, Supposn
“Economies of scale” are particularly higher within mass produced or mass delivery of goods and services. Due to foreign producers of less expensive steel, USA's production of steel had to be reduced, further increasing the cost per ton of USA produced steel; which in turn increases the price advantage of imported steel and additional rounds of increasing per unit costs of USA steel.
While USA steel production is being reduced, the costs of USA manufactured items using steel are also being increased; those producer's costs were already at disadvantage due to imports from lower-wage nations, they also had to reduce their production and the further price increases of their products naturally led to further production reductions or entire terminations of USA manufacturing sites.
Economies of scale concept is not limited to production of metal or plastic products, or only products of goods, but is also a consideration within producers of service products. It is of importance to the delivery of utility services or transportation of cargo or people. These are performed by many enterprises that directly or indirectly support producers of USA goods and service products and effects their costs per units of production.
When producers of USA service or goods products' cost per units are increased, those increases are not only passed on to USA consumers but additionally directly and indirectly to all other USA producers that they serve; due to inter-relationships between USA enterprises and the reduction of USA goods production due to imports from lower-wage nations, consequentially further increases imports price advantages over USA products.
I'll further discuss trade deficits detriment to our nation's GDP within the next post.
Respectfully, Supposn