Washington's Domestic Foes

When American companies act in their own best interest

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In your opinion, who wields more domestic pressure on the international policy of a nation? It always depends on the issue, as far as I can see. If it is a globalization-related labor issue, expect the labor unions and multi-national corporations to get involved. If it is
military-related, like an arms treaty or the missile defense shield, expect the defense industry to have an opinion.

For example, the multi-national Wal*Mart has a lot to do with the fight against flotation of the Chinese yuan. A variable yuan, not pegged to the dollar but tradable on its own merits on the monetary exchanges, would inevitably rise. This would affect Wal*Mart's profit margins by raising the price of cheap Chinese consumer and electronic goods. So you can bet that Wal*Mart is lobbying Washington fiercely to back off pressuring China to float the yuan.

Sources:
Barker, Ned. "U.S. Trade with China: Expectations vs. Reality." PBS Online. Internet: Link, accessed 25 April 2006.

Lardy, Nicholas R. "The Economic Rise of China: Threat or Opportunity?" Federal Reserve Bank of Cleveland. Internet: Link, accessed 25 April 2006.

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Business is its own self interest. However, not allowing currencies to float is just worthless. For then you get a black market trade in the difference, and the only loser is the government that pegs their currency to an arbitrary standard. Short Term , WalMart wins. Long term, it is a zero sum game. Paper is paper after all, and the worth of the paper is the confidence, or lack thereof, of the traders.

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Short Term , WalMart wins. Long term, it is a zero sum game.

Wal*Mart is hoping to accentuate its profit margin by preventing legislation that would help America compete with China.

Is that >>gasp<< un-American? Or should a transnational business issue take precedence over national interests?

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Wal*Mart is hoping to accentuate its profit margin by preventing legislation that would help America compete with China.

Is that >>gasp<< un-American? Or should a transnational business issue take precedence over national interests?

When WalMart starts dictating American Policy, I will be on the front lines to burn them in effigy or in reality. Until then, A business is a business. They act in self interest, not any other interest.

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