Question

Before you start this exercise, I want you to write down the answers to these questions.   Really, write them down BEFORE you read the discussion question.
1)  Are you for or against any forms of discrimination?  (Seems like a fairly ridiculous question, doesn't it?)
2) How do you define discrimination? If you had to describe discrimination what would it be?  How would you know if you were being discriminated against?
STOP!  Before you read anything else, did you write down the answer to the above questions?  Don't go any further until you have it written down!
Once you have this definition - please read on.
Most people would say that discrimination is when one person (or group) either received favorable (or unfavorable) treatment for some characteristic other than ones they can control.  Do you agree with this definition?
For example, being racial discriminated against in a job setting is when you are discriminated based on your race, and not based on qualification for a job.  Gender discrimination is when one gender gets preferred treatment due to being a particular gender.  Etc. 
So do you think there is any form of intended or unintended discrimination in the "buy American" or "American Made" advertising campaigns that exist?  Are these goods being judged based on their quality, their price, or anything that can foreign workers can compete?   Why do you think this advertising campaign exists? 
Most Economists believe that discrimination can occur on both sides of transactions.  Buyers and Sellers both have the ability to discriminate.  Please note that discrimination is very different than preferences.  For example, I may like Toyotas, that's a preference.  
Upon reflection, do you now view yourself as having any previously unidentified biases or forms of discrimination that you wouldn't have previously considered? If so, what might they be?  
Discuss... NOTE THIS IS LIKELY THE LONGEST DISCUSSION POST OF THE SEMESTER.  I'M EXPECTING FAR MORE THAN A COUPLE OF SENTENCES!

Answer 1

1. Yes , discrimination of any form in a society is unfavourable. However , price discrimination is a policy adopted by sellers in a monopoly market and a monopolistically competitive market in order to reach out to various of the market is a welcome feature since it shows that the firm has grown big enough to adopt such a technique.

2. Discrimination , as aptly stated in the passage itself, could mean a certain good or bad treatment for reasons beyond the control of the entity concerned.It may be a case of illogical reasoning and lack of practicality.

The discrimination adopted by a seller to sell the same product at different prices on grounds which are not directly connected to cost of producing the commodity or making it available for selling in the market, is called price discrimination. It has a specific purpose or aim and ensures that the target market enjoys the commodity for a lower price, assuming that the target market is the lower income segment of the overall market segment of the commodity.

By employing the technique of price discrimination ----the seller is able to meet the requirements of different market segments as well as enjoy the profits so generated from the sale of the commodity in both the markets.

Discrimination for the buyers could border on the feelings of brand loyalty, they maybe willing to pay more for a certain product of a certain brand but may not be willing to pay more for a similar product of another brand which in effect could  be its substitute. On an individual basis it could border on preference for that product while in case of market demand it could mean that buyers are subconsciously discriminating against newer firms or brands that would supply the same product.

Any such form of discrimination employed by the market forces of demand and supply are a healthy form of growth of markets since they relate to better quality products better service and more output being produced.

Hence the campaign for 'Buy American' or 'American made' goods is an attempt to popularise American products both in the domestic and international markets. It's an intended discrimination aimed at boosting the demand for American goods and services , its unintended benefits could include increase in the value of dollar against the other currencies of the world, a rise in the quantity and quality of American made goods and greater awareness about them especially in the international markets.