To illustrate, let me ask the question: would it make sense to locate a factory making toothpicks in Times Square in New York City? Why?
The simple answer is that it wouldn’t be an efficient deployment of capital.
Efficient deployment of capital is the rationale for all international trade on a country-by-country level.
Once you start demanding that, figuratively speaking, toothpicks be manufactured in Times Square so that Times Square has a local source of toothpicks, you’re on a path to economic ruin.
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