Made In The U.S.A.

The other time when it’s good to buy imported goods.

In Adventures on April 29, 2009 at 12:47 am

Comparative Advantage.

My mom just told me about this. (If you’re a photography major, you can get through college without classes on useful things like economics and science.)

Comparative Advantage is the economics principle that says, at least as I understand it, trade can be beneficial to both countries involved. It doesn’t have to mean the imbalanced neutering of one of the trading partners, so it means that importing isn’t always bad. 

Like when?

Like when one country may be able to make products A and B more cheaply than in another country, but the ratios between the costs involved in producing products A and B is different between those countries. Then one of those countries has a comparative advantage, even if in actual dollars it costs more to produce items A and B in that country.

Like I said, I didn’t study economics. This series of pages explains it much better.

The point is, I get that importing stuff isn’t inherently bad. Neither is trading based on the principles of comparative advantage.

What’s bad, though, is when an entire culture seems to be so out of whack that it becomes impossible to purchase certain items without depending on foreign intervention.

At least, I think that’s a problem. Why is that, again?

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