One thing the politicians failed to account for (but hopefully they've learned)

is that you don't structure trade agreements with countries who aren't at the same level of economic development as you (and/or won't float their currency)

But they probably didn't learn that. Nor do they give a shit. They HAVE jobs.

Discuss.

700,000 Korean cars were sold in the states last year. About 4,000 US cars were sold here. And look whats happening to the car industry there. The Korean higher ups are making a mint with that one. I also read somewhere that Korean phones make up 43% of the US market. The market share for US made phones is 0% here. Do the Americans even make cell phones??? I really dont know the answer to that.

A slight misbalance between the two countries methinks. That certainly needs tightening up.

And the Koreans themselves pay significantly more for Korean products than the Americans do. Work that one out.

Simply, most Asian country's have high savings ratios, where as countries such as America have high consumption ratios. Therefor you have Asian countries being exporters of Capital and America being importers. For the asian countries with a floating exchange rates is pretty much forces them into being exporters of G & S as well in order to keep the Balance of payments balanced. The only except is China (who's a net importer of capital and net exporter), but this is due to them fixing their exchange rate, which some estimate to be about 50% undervalued. What do they do with all this money flooding into their country? Buy US government bonds and pretty much hold them ransom. They will have to float their exchange rate eventually, there is only so long before the government can no longer steralize the huge inflow of money into their economy. Sorry been studying economics for a few days :-\