Economics of Sustainability: From Commodity to Value-Adding Industries and Nations

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by youngrobv (Rob & Ale)

by youngrobv (Rob & Ale)

Throughout history, countries that have shipped their raw materials to other counties for processing have lost out to the converters. The further along the conversion process a company is, in adding value, the more viable it is through time. Nations, and the businesses in them by and large, become stable and wealthy because they can make and provide goods and services, not because they own a source of basic commodities. Even with soaring international prices, the amount of income generated by mineral resources in a modern advanced economy remains relatively low compared to the converted products into which they are made. The tendency is to seek efficiencies for a competitive advantage, leaving other nations and businesses to make the real wealth off the resource. This is a losing strategy in the long run, and the long run is getting closer every day. (more…)

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