[lbo-talk] Recent Growth & Bush's Economic Policy

uvj at vsnl.com uvj at vsnl.com
Tue Jan 6 18:25:15 PST 2004


Alexandre Fenelon wrote:


> -Right, but, besides those items, countries like South Korea also
> -depend on the external market to feed their own population. Not
> -to mention energy.

Yes. Apart from the price of petrol, the fact that the US Navy dominates sealanes in Indian ocean gives the US enormous leverage over Japan, China and Europe.


> Countries like India or Brazil, whose imports
> -are about 10-15% of GDP are much less vulnerable to sudden changes
> -in external markets (but also slower in benefiting from a booming
> -external marketing)

Yes, but I think the distinction between the internal market and external markets has been considerably eroded, given dismantling of import controls, lowering of tariffs, floating exchange rates, regional free trade blocks.

Ulhas



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