Re: Economic Efficiency
I thought the answer was simply that, in asg's example, 1) the time it takes to transport something may not matter that much in relation to potential cost savings, 2) and the lower cost of wage-labour in country x may heavily mitigate the cost of resources used in transportation.
Basically, the variables I assume asg's thinking about - time, transportation costs, wage labour - vary to such a degree that it's useless to talk about their efficiency without understanding the variables' cost ratios and the intrinsic value of the product (what you are gay's said).
If you're looking at that equation from an environmentalist's point of view cost ratios are irrelevant, however; but an environmentalist isn't an economist.
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