Economics Week 33 Trade with all Nations

Prompt: “If Americans ‘buy Asian,’ what can Asian exporters do with the dollars?”

Trade between two countries benefits both countries, trade with Asia is a good example of this. If Americans buy Asian goods for dollars, Asians can use these dollars to buy American goods. Both countries grow wealthier. This also creates healthy competition within the countries. If Americans only had access to American goods there would be scarcity, and this would allow the American producers to charge more for their limited goods. But with access to goods from around the world American producers either have to make better quality goods, or sell them for less. Competition saves the consumer money, lessens scarcity, and creates better quality goods.

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