Question

Why are some countries poor and why do consumers in the United States import so much cheap clothing from poor countries? Is this ethical? Why or why not?

Answer 1

Some countries are poor in the world and some are rich. Lack of natural resources is the main reason for the poorness or poverty of any country. The countries which have no natural resources face lower economic growth. Apart from this low literacy rate, unemployment leads to lower per capita income (GDP), which increases the poverty level of the country.

Consumers in the United States import so much cheap clothing from poor countries because they are getting good quality or expensive clothes at a lower price. The cost of production is low in poor countries as compared to rich countries for producing the same quality product, this is because the wages of workers and cost of raw material is too low in the poor countries.

Yes, it is ethical to import goods and services from poor countries. It is beneficial for both exporter and importer countries. When a country (poor or rich) export goods and services, then it will increase the national income of the exporter country. An increase in national income leads to proper economic growth. It also increases the per capita income (GDP), which leads to a decrease in the poverty level.