Sunday, 14 March 2010

Why people buy products/goods/services from other countries and not locally

People don't buy many things locally. Sometimes, in the summer, vegetables are local, but even most of them are imported. Why don't we buy more things locally? Even if we considered the U.S. local, we still wouldn't get many things locally. This is because most of our possessions are made in other countries. Most of our things are made in other countries because it is cheaper and more efficient. Other countries don't charge as much, and most companies want to make money. So they go for the cheaper labor. It's also more efficient to make it out of the country. This is because factories are set up for a specific purpose, like producing one product. That factory is a "pro" at making that one thing. If we wanted to make it local and move it to the U.S., we would have to build the factories, costing money, hire the workers and pay them at least minimum wage, and then start producing the goods. The factory would be new at its job so it wouldn't know how to produce the product the most efficiently yet. This takes up time and more money. It's basically easier to produce goods in other countries.
There is also more of a selection if you get things not locally. Only so many things are made locally and in the U.S. and people want more things than are produced locally. So they buy lots of goods not made locally.

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