Imports

While many people think that importing goods from other countries can only harm an economy, this is not always true. The example I am referring to is that of the automobile industry. The benefits to consumers greatly outweigh the disadvantages that the producers encounter when the equilibrium price is lowered from the lower world price. When there is no importing of automobiles it could be assumed that the domestic producers have a type of monopoly on the industry and the consumers can only choose to buy from the domestic producers. This gives the producers the chance to make poorly assembled vehicles because they know if a consumer wants a vehicle they will be forced to buy from the options of what is being produced. When trade is introduced into this same market, and the importing countries are producing better made automobiles at lower prices, the domestic market is required to provide safer, higher quality vehicles to the consumers at the same price as the world price if these domestic producers want to keep their sales up. An example of this is how most older people I know are not in favor of having imported cars, but as many have come to find out through experience, imported vehicles like Hondas are the best economic choice of car for a list of reasons.