haha! I have think this same thing and often use it as an excuse to try to make my comments less offensive to my Argentine friends when I have an uncontrollable frustrated reaction in front of them caused by some other cheap thing breaking in my hands. Something like, "Man, we import the same cheap stuff from China. How come you guys get the raw end of the deal?"
Yea, the Chinese government buying US bonds has everything to do with the ABILITY of US consumers to buy more Chinese goods but explains NOTHING about the quality. Because we hold the world's reserve currency that China invests in heavily, it is also what help makes credit in the US underpriced for US consumers. Plus, the actions of China's central bank help keep these goods very very cheap for us holders of the dollar. Though, I think the reasoning about Argentina being a smaller market might be sound. If the world's exporters still look to the US consumer (because darn those responsible Germans save money and have a huge trade surplus!) to drive their export driven economic development aspirations, you probably will have incentives to not alienate clients with poor quality products than maybe in a less critical market.
As for computers, my bf used to buy them wholesale for his side business. I am told that one of the differences in the computers that are cheaper is because intellectual property rights are not enforced here (or only enforced when some cops need some cash), is that they come with Chinese parts that they come with microprocessors, Intel chips, that don't respect the patent laws for the technology. So the temporary monopoly provided by a patent that allows for the markup to cover RD is not figured into the cost...this means it is black market, but not necessarily terrible quality. He insists the parts are the same - but I say hogwash. I have never seen so many terrible consumer goods in my life! Just like any market outside the realm of enforcement, there is no way to protect the consumer from shoddy goods.
I have to go with Lucas on this one, the small business mentality is screw or be screwed, not long-term brand building:
Lucas said:
Do the Chinese send their junk to Argentina?
Not they don't, the importers in argentina buy the maximum crap they can find by the cheapest price offered and resell that crap with the maximum profit possible, that's their business mentality.
