Quote:
Originally Posted by djh
But on a protectionist note, it often means some good Canadian businesses can't compete on the thing that most consumers value most - price. So we lose good stores, bespoke businesses and family-run traditional stores over a corporate giant that is way cheaper. That bit is not good.
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Multi-nationals compete with multi-nationals -- due to taxes, minimum order sizes, integrated logistics and data. Chapters/Indigo put Duthie's out of business, not Borders or Barnes and Noble.
What do you want to protect? Tariffs last time around meant subsidizing Ontario and Quebec. Didn't add jobs out here, it just destroyed them as costs were higher. The bulk of the profits already leave the country effortlessly through the capital structure, if for no other reason than to evade income taxes. Heck, more jobs are probably being created by increasing the sq ft of retail per capita so what does losing 3 executive positions in Toronto count for?
People already buy online or cross-border, might as well save everyone some money by cutting out the sideshow of individually driving an extra 300km.
The goods are already produced for almost nothing abroad, might as well squeeze the gross margin. If the incumbents want to keep foreigners out, all they have to do is cut their prices and pass on the savings.