A surprising example of trade between the USA, China, and Korea.
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This example of trade is nearly the equivalent of the “selling fridges to Eskimos” that used to refer (in more politically incorrect times) to a very skilled salesperson.
Although it will come as no surprise that China is the biggest user of chopsticks, the fact that an American company is a big supplier of these chopsticks is unexpected - after all, surely with China’s much lower labour costs they would produce all the chopsticks they need. But labour is only one component of chopstick production, perhaps the most important component is the wood. And this is where the USA (and in particular the state of Georgia) seems to have a comparative advantage.
The poplar tree, which is plentiful in Georgia, is perfect for making chopsticks. It is not too soft or too hard, and its natural colour means that the chopsticks don’t have to be bleached to look nice, unlike chopsticks made from other woods. The company, Georgia Chopsticks, have been making 2 million chopsticks a day, and the recession in the USA has meant that there is a plentiful supply of labour. But demand is such that the owner is now importing machinery from Korea and soon will have the capacity to produce 10 million per day.
A great example of the gains from trade! A short video clip with the story can be found here. . A news article can be found here.
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