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Comparative Advantage

Jim, Mei, Flash and Kristin are meeting at the big table in the farm house. Looking out the big picture window,  Jim notices the gray white tips of bare alders seem to reach out for the fading afternnoon light, especially  at the top where the branches spread out  between the towering firs at the edge of the woods. The bottom of the trees are thick with bright green moss, higher up, spongy jade colored lichens glow in the dim mottled shade of the final direct rays. Everything in the forest is competing for light, space, scarce minerals, water.  In farm horticulture, there are certain crops that thrive in certain soils or locations on the farm. Jim muses, the secret to being a productive farmer is figuring what to do and where, and to spend your time on the things you do best.  

In the past year, the group has been trading services and goods with a number of farms and small businesses in the neighboring counties. The largest outbuilding has been converted into a sort of warehouse, where excess stock from Chehalem Farm and unused goods from other farms are stored, and packed back into containers and trucks and traded with third party suppliers.  

Now, the farm has established relations with the trading company that represents a  machinery manufacturing plant in China -through Jim's old business contact, Zuo Zhong. Flash has set up internet teleconferencing and shipping arrangements, Kristin is working on the pricing of trade goods and Mei is managing the China relationships. The goal is to send one container, the first, over to Xian - filled with high value agricultural products from the area - non perishable products like filberts, wine, organic canned fruits and jellies, and precut wood parts for furniture manufacturing in China.

In return, Zuo Zhong's company is sourcing a list of manufactured goods from around Xian - cloths, shoes, tools and electronics - goods that are source directly from the manufacturer and Obtained at twenty to thirty percent of U.S. retail prices. This first container exchange is set up as purely a barter experiment - no money is traded - and the participants on both sides have enjoyed working on the lists and terms and getting to know each other a little through the videoconferences and emails. The Chinese are very interested in sampling Oregon certifed organic foods, and the Oregonians would like to try out certain manufactured goods at a fraction of the retail price, without having to come up with cash. These can be traded with other farms for agricultural products.

Seven weeks later, both the Chinese and the Americans have received their first container. A video conference is set up, and the new friends in both countries are enthusiastically holding up goods to the camera and showing local orders and telling stories about conversations with local customers. The exchange has been succussful in building some trust and communication between both sides - even the older Chinese managers are practicing a few English phrases, and Mei is translating and has taught the Americans some greeting and phrases. There's already talk of doubling the orders, sending two containers back to each country, for the round trip trade.

Jim and Zuo have not met in person for years, but at the conclusion of the video conference, each man salutes the other, one lights up a cigar and the other a Chinese cigarette. Zuo is laughing and says, Mr. Jim, this is your favorite brand! The whole group, about fourty Chinese and Americans, one group looking out a window at a nearly full moon, and the other standing in full sunlight, toast each other with diet colas, beer, Xian white liquor and tea. To friendship!
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