How does importing of low-price goods create wealth?
Victor V asked:
Wealth so society can import everything cheaper from other countries so society can import everything cheaper from other countries so cheap that it at home how do country further create new jobs and create new jobs and create new jobs and create new jobs and.
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Wealth so society can import everything cheaper from other countries so society can import everything cheaper from other countries so cheap that it at home how do country further create new jobs and create new jobs and create new jobs and create new jobs and.
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Kansieo.com
It can’t. That’s one of the reasons our economies in such a mess now.
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Even though the US is moving many of its low paying jobs overseas, it still creates many high paying jobs for people who actually handle the importing. Even though goods are imported, you still need people in the US to manage and actually import the goods.
Double edged sword!
Cheap goods help Westerners be rich- since their income goes much further!
It doesn’t create any wealth… since industries are lost when they
move to cheap countries-this actually helps poor countries to become rich, as investment creates jobs, rises salaries… that’s why China is rising.
West is slowly going towards more and more service-oriented economy… This is inevitable in the long run.
Simply put, there are going to be big changes in structure of western economies. This has been happening for a long time now…
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Cheap imports allow for an increase in productivity without the risk of inflation. For example a firm like Sony manufactures it’s cheaper TVs in China, but then keeps the production of the latest models in Kyoto. The Sony workers in Kyoto then use their wages to buy cheap Chinese goods so inflationary pressure is relieved even as the Kyoto factory worker make good money making those huge flat-screen TVs .
Wealth
There’s one very large problem with the assumptions of your question. International trade is based on comparative advantage. Comparative advantage is relative so a country will always produce whatever brings it the most value. By specializing in production of whatever goods it has a comparative advantage in producing a country increases the amount of that good sold and the revenue available to purchase imports.
There is always an incentive to create new jobs, it’s called laziness and greed. Contrary to popular belief laziness and greed are good. They have been driving human progress for millenia. Isn’t much easier to do research on the internet at home rather than going to the library? A lot of people have made a lot of money making millions of people’s lives easier.