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S Illinois | There is no such thing as two equal playing fields in two different countries as no 2 countries are the same. You can’t look at a single industry or factory in a vacuum. There are demographic differences, consumer tendencies, political stability, infrastructure differences, etc. Exchange rates by their very definition is what levels the playing field country to country as it is determined by people’s willingness to hold one currency over another.
In your lumber example, you are not taking into account the economy as a whole, just a single snapshot. Efficiency will win the day always, but that efficiency is not only a production issue, it’s a society issue. Two exact mills just on either side of the border don’t have the same field. There are structural differences in the environment they operate in.
It’s not free. There is reason there is bond market. That printing comes at a cost and currency exchange rates are the ultimate expression of that cost.
Exporting of goods does not make a country stronger or wealthier. | |
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China expands restrictions on rare earths and chips..
