Isn’t that making the presumption that the counter parties are working in a free market? If, for example, their government dramatically subsidizes the cost of energy to make their steel cheaper than other countries, causing a market distortion. Should it be accepted because consumers get cheaper prices in the short run? What about the resulting monopoly and cost rises that eventually come — yes, eventually it’ll drive competitors, but that lead/lag cycle is brutal. And no reason to think they won’t pull the floor out as soon as your investment is committed.
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Isn’t that making the presumption that the counter parties are working in a free market? If, for example, their government dramatically subsidizes the cost of energy to make their steel cheaper than other countries, causing a market distortion. Should it be accepted because consumers get cheaper prices in the short run? What about the resulting monopoly and cost rises that eventually come — yes, eventually it’ll drive competitors, but that lead/lag cycle is brutal. And no reason to think they won’t pull the floor out as soon as your investment is committed.