BUSINESS ADMINISTRATION
INTERNATIONAL MARKETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The US does not import products
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Some are easier and cheaper to make in other countries
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The US makes all of its own products
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Detailed explanation-1: -Why America Imports So Much. Although America can produce all it needs, China, Mexico, and other emerging market countries can produce it for less. Their cost of living is lower, which allows them to pay their workers less. Thus, they are better at producing what U.S. consumers want than American companies could.
Detailed explanation-2: -Often, goods from abroad are cheaper because they offer cheaper capital or labor costs; if those goods become more expensive, then consumers will choose the relatively costlier domestic product. Overall, consumers tend to lose out with tariffs, where the taxes are collected domestically.
Detailed explanation-3: -Reduced costs Why is that? Oftentimes, it’s cheaper to import and transport the food than it is to produce it locally. The dollar is more valuable in other countries. As a result, these countries sell their foods at lower prices, something we can take advantage out of.
Detailed explanation-4: -A big reason why import prices are falling is because of the rising value of the U.S. dollar. A strong dollar allows Americans to buy foreign products at lower prices than they previously had been paying. The result: The U.S. is basically importing deflation and offering consumers some respite from higher prices.