Economics 101- Fundamentals
December 2, 2014
` Do you sometime wonder why items are made where they are they are made? In my opinion things are made depends on the benefits such as cost, resources, value of that product, and labor cost. If it is cheaper to be made in a different country then it not only benefit our country it also benefits us as people. The price of a product would not be as high if it is produced in another country rather than the United States. In other countries the cost of labor is way cheaper then it is here. For instance some people may only get paid one dollar a day and as for here in America you have to at least pay minimum wage by law. In other countries living, and other expects of life is cheaper. Being paid less than they should is ok for them because things in there country are not as expensive as it is here.
Imports are goods brought from one country to another to sale. Imports improve American families’ standard of living. They help families make ends meet by ensuring a wide selection of budget-friendly goods, like electronics we use to communicate and many clothes and shoes we wear, and improve the year-round supply of such staples as fresh fruits and vegetables. Imports support more than 16 million American jobs. A large number of these import-related jobs are union jobs, held by minorities and women, and are located across the United States. But it also creates a great number of job losses. Many factories are closing and laying people off because the cost of labor is cheaper in other countries. More than half the firms involved in direct importing are small businesses, employing fewer than 50 workers. American manufacturers and farmers rely on imports including raw materials and intermediate goods to lower their production costs and stay competitive in domestic and international markets. Factories and farms purchase more than 60 percent of U.S. imports.
Things are made in other counties because of trading. Trading is benefits both countries in many ways. Why do countries trade? Shouldn't a strong country such as the United States produce all of the computers, television sets, automobiles, cameras, and VCRs it wants rather than import such products from Japan? Why do the Japanese and other countries buy wheat, corn, chemical products, aircraft, manufactured goods, and informational services from the United States? Because countries have different natural, human, and capital resources and different ways of combining these resources, they are not equally efficient at producing the goods and services that their residents demand. The decision to produce any good or service has an opportunity cost, which is the amount of…