Brexit, The Economy and House Prices (Part 2)

always_sunny

gfplux wrote: »

I then assume Britain will set up its own UK-ESTA.

Britain is already outside of Schengen and already has its on UK-ESTA equivalent, non-EU nationals apply for visas and courier passports to the home office. EU nationals use it for family permits.

Streamlining and harmonising the visas to enter Schengen member states will be very welcomed and overdue and if that becomes a paying system like in the United States, fair enough.

In the USA, Canadians do not need to apply for ESTA, so maybe the EU-UK can organise a similar arrangement however, the current British rhetoric seems wanting to cut all ties therefore the idea that Britons will be treated differently than any other non-EU national is absurd and reflects British desire to treat EU nationals the same as non-EU.

Tromking

Thrugelmir wrote: »

What electrical goods does the UK still manufacture at all?

I couldn't tell you, just making the point that Dyson products are already subject to import tariffs to the EU.

A_Medium_Size_Jock

ilovehouses wrote: »

That possibility isn't being disputed but let's think more deeply how it would work in the example at hand.

I reckon the tariff for importing a vacuum cleaner into the EU with a self contained electric motor of 1500W or less is 2.2%.

So here's the plan. We leave the EU without a trade deal. Dyson sends vacuum cleaners to the EU and her consumers now have to pay 2.2% duty. Dyson compensates the EU consumer and takes a margin hit. The government compensates Dyson by reducing corporation tax and raises more tax as a result. I think I've just invented the perpetual motion machine!

When something sounds too good to be true....

More like when someone is determined in an attempt to prove their incorrect thoughts that something sounds too good to be true: as you have been informed already, Dyson products are manufactured in the far east which makes your point totally irrelevant in this case at least.
Dyson's UK facilities are for research & development.

Tromking wrote: »

I couldn't tell you, just making the point that Dyson products are already subject to import tariffs to the EU.

Quite so - but we mustn't let a little thing like fact get in the way must we?


No "perpetual motion machine"then, more like a "perpetual propaganda machine" attempt which has now been debunked.

A_Medium_Size_Jock

gfplux wrote: »

It's not always about the labour cost. A NEW factory will make the product more efficiently and therefore more cheaply. The new factory will employ less people.
Britain is often mentioned as having low productivity I believe it is less to do with the worker and more with using less productive machinery on the production line. Where the fault lies I don't know but the Government have a roll to play and it appears successive governments have not done enough. It also may be more to do with Globalisation and board rooms deciding Britain is not where they should build the new factory.

And yet in the case of Cadburys as was being discussed earlier and relating to:

ilovehouses wrote: »

It's not rocket science. The Polish factory can produce chocolate more efficiently and cheaply than their UK counterparts.

recent events are again ignored.

Chocolate maker unveils first big change at Bournville plant since completion of £75m investment into new production lines

http://www.birminghampost.co.uk/business/manufacturing/two-cadbury-bars-now-made-13292120

Cadbury is adding two fresh products to the range of chocolates it produces at Bournville.

https://www.expressandstar.com/news/business/2017/07/07/cadbury-expands-production-at-bournville/

"Bourneville is now competing in the premier league of European factories" Glenn Caton, president of North Europe for Mondelez

http://www.confectionerynews.com/Manufacturers/Cadbury-adds-Dairy-Milk-Oreo-and-Tiffin-production-to-Bournville-plant

always_sunny

A_Medium_Size_Jock wrote: »

And yet in the case of Cadburys as was being discussed earlier and relating to: recent events are again ignored.

http://www.birminghampost.co.uk/business/manufacturing/two-cadbury-bars-now-made-13292120

https://www.expressandstar.com/news/business/2017/07/07/cadbury-expands-production-at-bournville/

http://www.confectionerynews.com/Manufacturers/Cadbury-adds-Dairy-Milk-Oreo-and-Tiffin-production-to-Bournville-plant

You're reading too much into this and believe that Mondelez is re-shoring to the UK greater operations than what it is.

The investment is about improving productivity levels in the British plant as those abroad (read before the investment, the British plant was at risk of closure cause it wasn't as productive). It did not create any new jobs and there are no intention to expand either [for now].

However you want to roll it, wages for manufacturer workers in Poland are around half of what they're in the UK.

cogito

To put it another way, wages in the UK are double what they are in Poland. So are you saying that wages in the UK should be reduced to compete with eastern Europeans?

kabayiri

Thrugelmir wrote: »

What electrical goods does the UK still manufacture at all?

From products I am personally aware about.

Re hifi : Meridian; Rega; Naim.

The top of the line Siemens microwave is also made in the UK, the cheaper ones come from elsewhere.

A company like Rega get various bits made from all over the UK, including parts from Scotland for example.

During the last drop of sterling against the euro a couple of years back, Rega chose to get a specialist digital motor from an UK supplier rather than Dutch. Both units were high quality, it just hedged them from price variations.

The reputation for supporting product well beyond their sales life is high amongst UK manufacturers, and they attract very strong following from educated consumers from Japan to Canada.

A_Medium_Size_Jock

always_sunny wrote: »

You're reading too much into this and believe that Mondelez is re-shoring to the UK greater operations than what it is.

The investment is about improving productivity levels in the British plant as those abroad (read before the investment, the British plant was at risk of closure cause it wasn't as productive). It did not create any new jobs and there are no intention to expand either [for now].

However you want to roll it, wages for manufacturer workers in Poland are around half of what they're in the UK.

No, I only responded to an obviously incorrect supposition that the UK could not compete with it's supposedly lower productivity and higher costs.
Since Mondelez and their increasing range manufactured here within the UK say otherwise, you are the one reading too much into this; the wages of Polish workers in this case seems irrelevant.
Modelez has increased their UK-produced range.
Mondelez has said that their UK production is globally competitive.

"However you want to roll it" this is to the benefit of UK workers.

kabayiri

cogito wrote: »

To put it another way, wages in the UK are double what they are in Poland. So are you saying that wages in the UK should be reduced to compete with eastern Europeans?

An automated plant processing chickens can run with just 4 people on the line. It makes wages almost irrelevant.

It's like most things. Get the plant design right and you achieve the biggest gains.

mayonnaise

MUFG eyes Amsterdam as post-Brexit EU base

Mitsubishi UFJ Financial Group, Japan’s biggest bank, plans to choose Amsterdam as the new EU base for its investment banking operations to cope with the disruption of Brexit

MUFG’s move also underlines how many of the world’s biggest banks have decided they cannot afford to wait for political uncertainty surrounding the outcome of Brexit negotiations to clear before implementing their plans for a potential clean break between the UK and EU

https://www.ft.com/content/158dcffe-7535-11e7-90c0-90a9d1bc9691