We could be in Brazil, India, Russia, or Japan, and show people on the street some objects, and ask them to tell us what country the object is associated with.
Nintendo = Japan
Samsung = Korea
Nike = USA
Coca-Cola = USA
Microsoft Windows = USA
BMW = Germany
Louis Vuitton = France
Insulin = puzzled confused look
I'm sure that some of the oil and paper & pulp products from Canada get used around the world. But none of it would be identified as being Canadian.
That''s simply because Canada's largest corporations tend to produce intermediary or semi-processed goods purchased by other corporations. They tend not to be producers of end-consumer products that the average sepp would be aware of.
But look at Canada & Australia today. All you hicks do is export natural resources. You guys don't contribute anything to the tech sector. You guys are no better than Saudi Arabia, Kuwait, and Nigeria, except that you have lighter skin.
ok, so if you yourself owned a piece of real estate that happened to contain a massive oil reservoir or a rich vein of valuable minerals, what would you do? Ignore all that and start manufacturing cell phones or cars or some such increasingly low-margin business ? Only a fucking sepp would be this stupid.
That''s simply because Canada's largest corporations tend to produce intermediary or semi-processed goods purchased by other corporations. They tend not to be producers of end-consumer products that the average sepp would be aware of.
Same with Saudi Arabia and Kuwait.
Saudi Arabia, Kuwait, Canada, Australia all basically have the same type of economy. They export natural resources. That's it. No engineering or science needed. No creative thinking needed. No globally competitive business needed.
Canada tried being a thinking-person's economy. But after Nortel and RIM Blackberry failed, they've come to accept the fact that they just can't compete in engineering & science, and they should just sit back, export natural resources, and play hockey.
ok, so if you yourself owned a piece of real estate that happened to contain a massive oil reservoir or a rich vein of valuable minerals, what would you do? Ignore all that and start manufacturing cell phones or cars or some such increasingly low-margin business ? Only a fucking sepp would be this stupid.
I would do both. Which is what USA did, in building America into the world's super power. USA was the largest producer of oil in the world. At the same time, USA was the global center of industrial production and technological innovation.
Saudi Arabia, Kuwait, Canada, Australia all basically have the same type of economy. They export natural resources. That's it. No engineering or science needed. No creative thinking needed. No globally competitive business needed.
Canada tried being a thinking-person's economy. But after Nortel and RIM Blackberry failed, they've come to accept the fact that they just can't compete in engineering & science, and they should just sit back, export natural resources, and play hockey.
You think you don't need engineering to mine diamonds in the high arctic or oil in the north sea? As for science where were stem cells discovered? (HINT: T-DOT)
ok, so if you yourself owned a piece of real estate that happened to contain a massive oil reservoir or a rich vein of valuable minerals, what would you do? Ignore all that and start manufacturing cell phones or cars or some such increasingly low-margin business ? Only a fucking sepp would be this stupid.
I would do both. Which is what USA did, in building America into the world's super power. USA was the largest producer of oil in the world. At the same time, USA was the global center of industrial production and technological innovation.
This line of thinking made sense a hundred years ago when resource prices were cheap and the US effectively had first-mover advantage. Now the whole world is becoming developed, manufacturing margins are being squeezed to the vanishing point by the chinks and others, and resource prices are high and will stay that way for as long as lesser economies continue to play catch-up to the developed nations. Canada knows where its bread is buttered.
This line of thinking made sense a hundred years ago when resource prices were cheap and the US effectively had first-mover advantage. Now the whole world is becoming developed, manufacturing margins are being squeezed to the vanishing point by the chinks and others
And this is a GOOD thing for companies like Apple, since they enjoy HUGE profit margins, while their contract manufacturers in China have razor thin profit margins.
Tech companies like Google, Apple, Microsoft enjoy huge profit margins.
Exporting natural resources works in the short-term. But you better have something to build upon when that dries up. And if your country has a massive brain drain, with all the best engineers & scientists leaving, then your country will end up as a barren wasteland full of morons.
Posted 7/12/2012 2:23 am
The collapse of Nortel & RIM Blackberry have shown that we are incompetent in engineering & science. Now, all our smart guys move to Silicon Valley. All our hot chicks move to Hollywood. Canada is now just an artic wasteland full of frozen dummies. We'll just export natural resources while it lasts, and then commit mass suicide along with death2me.
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This line of thinking made sense a hundred years ago when resource prices were cheap and the US effectively had first-mover advantage. Now the whole world is becoming developed, manufacturing margins are being squeezed to the vanishing point by the chinks and others
And this is a GOOD thing for companies like Apple, since they enjoy HUGE profit margins, while their contract manufacturers in China have razor thin profit margins.
Tech companies like Google, Apple, Microsoft enjoy huge profit margins.
Exporting natural resources works in the short-term. But you better have something to build upon when that dries up. And if your country has a massive brain drain, with all the best engineers & scientists leaving, then your country will end up as a barren wasteland full of morons.
AAPL is an anomaly and everyone knows it. And even then, its most recent profit margin was 27.13%, whereas uber-low-tech Potash Corp (Canadian fertilizer maker) made 28.12% in its most recent fiscal year.
But I agree with you, resource exporters have to plan for the future and we Canadians are not making a good job of it. We should be building a massive sovereign wealth fund like Norway's.
It's like asking why does Tokyo or Paris produce so much of what comes out of Japan or France.
Talented people born in Canada move to cities like NYC and LA all the time. It's not because America is "better," it's because Canadians speak the same language and the country is too small to have any Alpha level cities of their own.
More and more talented people are ending up in Beijing and Shanghai these days though. When China overtakes the US in terms of economic power in the next couple decades, it's going to be interesting to see what happens when the "brain drain" starts moving out of the US instead of in, as it has for most of the country's history.
It's like asking why does Tokyo or Paris produce so much of what comes out of Japan or France.
Talented people born in Canada move to cities like NYC and LA all the time. It's not because America is "better," it's because Canadians speak the same language and the country is too small to have any Alpha level cities of their own.
More and more talented people are ending up in Beijing and Shanghai these days though. When China overtakes the US in terms of economic power in the next couple decades, it's going to be interesting to see what happens when the "brain drain" starts moving out of the US instead of in, as it has for most of the country's history.
Keep dreaming skippy.
I'm moving to china to shit in a hole and work for Dong Bong
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You need to come up with all original ideas. Chinese mind unable to be creative but know how to remember facts for tests!
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