Question

Politicians often argue that a country's standard of living is reduced when it allows imports into the country. Offer an economically sound counter-argument.

Answer 1

Politicians often argue that a country's standard of living is reduced when it allows imports into the country.

Its counter argument will be - a country's standard of living is increased when it allows imports into the country and this argument is very very correct. We can say this because as we know that when a country enters into international trade it is specialised in the production of such goods which they can produce efficiently and they import other goods. So when people import more goods it means that people now consume those goods also which they cant buy within the country so using a variety of goods and services increases the standard of living.

For example a country cant produce cars so if there are no imports than people have to live without cars but when import is allowed now people have the option to buy a car and hence raise their standard of living. Similarly many different items of daily use can be consumed.

It is also economical because if these goods are produced in home country it will be high priced due to higher cost but when imported from those countries who can produce it efficiently it becomes cheaper.