₦airaland Forum

jln115:
Supply and Demand bro.... If you could import for much cheaper then why would you produce locally it in the first place?? Because you are some Saint that wants to create jobs? Get real bro!!

Besides your example of America is flawed as the cars America imports are generally more expensive than the ones they produce(also America produces and sells far far more cars than it imports) , and the reason they import it is because of demand.... People that can afford it would rather want a Mercedes or BMW than a Ford or Chev. Secondly your assumption that America produces enough is subjective.... But what I can tell you is they are not meeting demand hence why the US automotive industry is still growing.

And yes I know what the WTO rules are.

You are not grasping the concept.... But let me make it simple for you.... If you import textiles because they are cheap, the fewer you are going to produce, if you produce more and more textiles then the fewer you are going to import.... But you are not going to produce so much textile to exceed demand and on top of that import textiles because they are cheaper as you claim Nigeria is doing.... You are either going to do on or another and find a balance on how much you are importing and how fast you are importing vs how much you are producing which is economically the most practical.

I agree with the bolded 100% I wasn't arguing that Fact....but your own example proves exactly my point, as when China flooded the European market with cheap solar panels people bought them instead of locally produced ones that in turn caused local production to slump(causing joblosses and what not) .... They didn't continue to produce the same amount as before because that you be stup1d!!

The fact that you said Nigeria produces textiles that exceeds demand and then on top of that imports textiles because they are cheaper proved you don't know simple supply vs demand..... Yet you calling me dumb?

If you said Nigeria has the capacity to produce enough textiles to meet local demand then at least you would of had an argument(albeit without evidence) but they are certainly not producing textiles that exceed demand and on top of that importing it as well

vaxx1:
Ghana is moving forward ....... About to be open at the end of the month

This is the Minister for Trade and Industry, Alan Kwadwo Kyerematen, at the premises of the VW Assembly Plant, located at the North Industrial Area, in Accra.

In the President’s Message on the State of the Nation, on 21st February, 2020, he stated that “VW is building its plant at the North Industrial Area in Accra, and is due to start production by the end of April. Sinotruk has begun assembling its trucks. Toyota is scheduled to start the assembly of vehicles in Tema in the last quarter of this year. We have high hopes for this new industry, which has come to join our own Kantanka.”

mtisTheQubit:
Look man,the best way African economies will survive is to concentrate where they are good at..take an example of Nigeria, its good that you are building a refinery to add value to the oil you export ..thats good..or the tech hubs ya starting in lagos..but you cant just go on producing everything just like China does ..
Another example would be Ghana..if only they would add value to their cocoa beans..

mtisTheQubit:
Thre is nothing tech about ths bro..

chrisooblog:
there's nothing the chinese don't produce cheaply but as a responsible country you won't just lie down saying let just import stuff because it's cheap you defend your economy by any means necessary

mtisTheQubit:

so they stole design for a cloth..an I thought kente was like high tech stuff

jln115:
neither is it yours

chrisooblog:
exactly for all of trump's idiosyncrasies he knows the threat that unhindered trade from china poses.

chrisooblog:
Just30 has a point. a lot of business people in Nigeria before the oil price crash/pre-buhari were always importing things on the cheap because our central bank usually provided forex i.e at "official government rates" lower than the actual value of naira to dollar in the blackmarket. rather than setup industries that cost arm and a leg they would rather go for cheaper imports because free oil money. Like rice for example nigeria just couple of years back was one of the highest importers of rice in WA. then the current govt rightly said hold up we can grow this stuff here why do we need to waste scarce forex importing what we can produce. have we met all local demand for rice? no but we have definitely saved precious forex we were just gifting the thais and indians. The textile industry you mentioned was already booming before the economic slump of the 80s and 90s. in the north of Nigeria particularly kano and kaduna there was a booming textile industrial space. it has been picking up of recent.

mtisTheQubit:
trust me am good at stuff when need be. ..

mtisTheQubit:
All ths coz i mentioned a certain african Country passing china stuff as their own ?

chrisooblog:
yeah just checked too mombasa port is such a beehive of activity

jln115:
But we don't have the skill or infastructure to do so as yet.

jln115:
Think logically for a second please!!! Why would anybody produce textiles in the first place, if it was cheaper for everybody to import it from China?? If Nigeria produced enough textiles then they wouldnt import it, if indeed textiles are cheaper to import then nobody would produce it,

It is impossible for Nigeria to locally produce enough textiles that meets(or as you say exceeds) demand yet then to import even more textiles from China because its cheaper..... What you are saying is economically(and mathematically) impossible,

Same goes for metals

And how would citizens kill local production? No sane person is going to buy the same product for twice the price just because its produced in their own country... It's up to government to ensure that local production is cheap enough(through government support, infastructure and other policies) as well as ensuring that import products from countries like China are tariffed as to ensure fairness within the markets

mtisTheQubit:
look am into IT now but the crap you post here about economics sometimes makes me shudder with rage an fury

mtisTheQubit:
boss its the new game..do you know why big tech companies buy start-ups...
Look we dont need to reinvent the wheel..you dont need to create another Facebook coz you feel africa needs its own facebook...You dont need to manufacture crappy cars in the name of Africanization when we all know that most of stuff is from china..get my point

mtisTheQubit:
if i told you my first degree was on economics will you agree..

mtisTheQubit:
Yes but the world has changed..Time for reinventing the wheel is over..Ever heard of global trade..my suggestion is to learn tech an apply it...its worked for china an india an slowly is working in some african countries (like kenya )

mtisTheQubit:
Kamikaze economist Africa is not ready to compete with ths countries for now..we haven't gotten the tech transfer yet...so you think coz naija got metals an stuff they can go fulll production mode..dude they tried that before..Anyway just to be clear on the photo below, i think Igbos were far ahead of time..

mtisTheQubit:
due ya so luck i dont feel like cursing today..but please just30 use you damn head for Pete's sake

mtisTheQubit:
First Just30 is not a Nigerian,he is a Ghananina..second few countries in Africa can survive on their own..actually, apart from minerals most of ths countries produce nothing..so what happens if we can import medicine or machinery or other tech..just saying...

jln115:
have you ever heard of import tariffs and shipping costs?

Yes I agree some imports are cheaper but most aren't and are imported due to either that it's not produced in said country and/or local supply can't meet local demand.

Nigeria imports metals and textiles because they don't produce enough of them as simple as that.

If they did import simply to kill local production as you said then not only is that fvcked up but its economical suicide!!

jln115:
If they did then they wouldn't import it in the first place!!

Secondly its not just machinery, its also metals and textiles used in production

jln115:
China makes up 28% of Nigerias imports.... Most of it is machines, metals and textiles that Nigeria doesn't produce...... So ofcourse it going to effect Nigerian production and thus in turn effect the Nigerian economy.

Also why will export and inport trade(or lack there of) effect only the Chinese economy and not its biggest importers..... You are literally contradicting your self:

samorobo:
I will be checking that maritime stuff this morning...or better still help me with the link..

mtisTheQubit:
Listen to the real economists bro...

jln115:
Don't try to be smart bro there is certainly a major impact on import and export markets already......which in turn has an impact on financial markets

jln115:
Actually Nigerias economy will be the most effected as it is the biggest importer of Chinese goods in Africa

Stevoh18:
Nigerias economy is oil dependant you only get affected where it is concerned.... Kenya is the most diversified economy, more connected to the rest of the world....Kenya will never be hit as hard as a country that is relying solely on one product and one market