Question

Unit 9

Discussion Board

Please use your own experiences and the knowledge you have gained from this week’s readings to answer the following topics and questions. Make sure you use economic concepts in your main contribution.  

The purpose of this assignment is to understand the terms import and export, and then explain the advantages or disadvantages of buying imports rather than buying domestic products. You could, for instance, write about an imported automobile, stereo, or household appliance that you bought or considered buying. Include all of the following points in your discussion.

1. If you were a retailer, would you want to sell domestically made goods or imported items? Please explain why you made this choice.
2. If you wanted to sell a good or service to customers in other countries, what sorts of items do you think you could export?
3. In your opinion, should the United States’ Federal Government support companies that want to enter export markets? Please explain.

Answer 1

Importing means buying foreign goods and services by citizens, businesses and government of a country. No matter, how they are sent to the country. Whereas Exporting means goods and services which are produced in one country are purchased in another country. It is produced domestically and sold to someone in a foreign country. Both of these terms are closely related because the export for one country is the import for another country.

There are both advantages and disadvantages of buying imports rather than buying goods produced in home country. The advantages of buying imported goods includes, one may consider an imported good if it is better quality, durable, having more features and less price. One may also go for the foreign goods because there are a lots of choices available to choose from. The disadvantages of buying an imported good is that it is ultimately a loss for the economy/country because if we buy an imported good the money that we pay as price for the good goes to the country from which the good was imported. This movement of money out of the country is not good for the country as it creates a deficit in BOP.

The choice of selling domestically produced goods or imported goods depends on the types of customers we have. But if I we a retailer I would like to sell both imported goods as well as domestic goods (if it is the case to choose one, choose imported). This is because as a retailer it is my responsibility against the customers to provide them with wide variety of options to choose from. But if I decide to sell only domestically produced goods there will be limited choice (2 to 3 brands) but different imported goods can be bought from different countries of different quality and price range.

If I wanted to sell a good or service to other countries I could export such goods or services which are in excess in quantity in home country and which can be produced at a lower cost than other countries. The choice is different for different countries.

The United States Federal Government should support those companies that want to enter export market, this is because if a country exports more goods and services it is ultimately helpful for the country because it will improve the BOP of the country and hence country's National Income and GDP will improve and will help in growth of the country.