Bombs for Muffins
Re-Exporting?
So I have never heard the term re-exporting before, but now I have after reading an article on the Liverpool cotton market from 1814-1914 (for my Historiography paper). So I was wondering what does it mean? Are there advantages? What are the disadvantages?
Vicarius Provinciae
Re: Re-Exporting?
Essentially it is the avoidance and work around of trade barriers between countries. To fabricate an example say New Zealand has wool to sell on the international market but Japan has a high tarriff on wool from every country but Singapore. Buyers in Singapore import the New Zealand wool and then export it to Japan, thereby avoiding the tariff that would have been imposed otherwise.
It is if nothing else an example of the inevitablty of everything to behave according to the laws of economics. Goods are always seeking the most efficient paths from seller to buyer.
Last edited by Big War Bird; November 07, 2012 at 10:10 PM.
As a teenager, I was taken to various houses and flats above takeaways in the north of England, to be beaten, tortured and raped over 100 times. I was called a “white slag” and “white ****” as they beat me.
-Ella Hill
Re: Re-Exporting?
The path of least resistance?
Comes Rei Militaris
Re: Re-Exporting?
Go for broke(rage).
Eats, shoots, and leaves.
Re: Re-Exporting?
It could also be used to avoid internal tax like income tax. Many company doing it, for example Company A producing palm oil in Indonesia, the corporate tax is 35%, they create company B in Singapore (15% corporate tax), export the palm oil to Singapore at base cost, using the company B to reexport to China. Saving 20% profit tax at the cost of some paper work and creating P.o. Box company with 1-2 employee at Singapore.
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