Foxconn's Possible US $7 Billion Display Plant - Yes Transport, Not Trump, Costs Matter Even Today

Terry Gou, CEO of Foxconn, has mentioned that he is thinking of investing in a display producing plant in the US. This has caused much excitement as the investment would be of the $7 billion sort of order. That's just the rough amount that such plants, ones at the leading technological edge, cost these days. Some are indicating that this is all a result of Donald Trump's election, his America first inauguration speech and so on but it's actually down to something very much more mundane than that. Where you produce something depends upon the economic costs of producing in that place. David Ricardo is still correct both on comparative advantage and also on the law of one price. Pretty good for someone who published in 1817.







Read More: http://www.forbes.com/sites/timworstall/2017/01/22/foxconns-possible-us-7-billion-display-plant-yes-transport-not-trump-costs-matter-even-today/#76346edc69ae