The Importance of Importing

The Importance of Importing - Ex They may pay their workers...

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The Importance of Importing Product Demand – customers who want a unique item sometimes must purchase a foreign product due to climate or fashion or quality Ex. Almost all of the bananas, cocoa, and coffee consumed in Canada is imported, as are the leather shoes and marble Lower Costs – prices are constantly changing, and the existence of economies of scale means that some countries can produce products for a much lower price
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Unformatted text preview: Ex. They may pay their workers less, or their currency exchange results in a lower price for the importer Production Inputs – component parts come from many different countries as they can specialize in the manufacturing of one piece Ex. Car parts come from all over the world to be assembled at the Honda plant in Alliston, ON VOLUNTARY TRADE CREATES WEALTH!...
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