04 August 2008
And in the Department of the Blatantly Obvious
The New York Times is noting that increases in shipping costs are pushing against globalization.
This really is no surprise. You saw a decrease in overseas trade between the US and Europe in the 1920s because production costs fell, but transportation costs remained relatively static. Krugman notes this here.
This really is no surprise. You saw a decrease in overseas trade between the US and Europe in the 1920s because production costs fell, but transportation costs remained relatively static. Krugman notes this here.
Labels:
Energy
,
International Commerce
,
Transportation
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