International Trade
How do imports and exports work?
Goal:
Goal:
Import =
bringing something in
(import → in)
Export =
sending something out
(export → out)
Why do countries import and export goods? Countries import goods so they don't have to produce something themselves. Or perhaps they import goods because they can't produce the product at all or as cheaply as another country can.
Countries export goods that others want and don't have. Countries also export goods that they are able to produce more cheaply than other countries.
The United States imports some foods from other countries, but it exports a lot of food, too. Why?
Bananas and avocados are examples of fruit that are imported into the U.S. Even though these fruits may grow in the U.S., countries like Mexico, Brazil, and Peru have warmer climates where the growing season is longer. A longer growing season means more fruit.
These countries also have cheaper labor than the U.S. That means the workers there are paid a lower wage to do the same work as someone in the U.S..
These costs add up, so it is cheaper to import these goods into the U.S. rather than produce them here.
Examples of Imports and Exports
 |
Look at the tag on the back of your clothes. Where does it say your clothes are made? Most likely they are made in China, India, or Vietnam. 
It costs less to have clothes made in those countries, so the United States imports a lot of clothing from them. China exports rice because it can grow an abundance of it, keeping down the cost. 
Countries with warmer climates, like Mexico, Brazil, Chile, and Peru, export fruits and vegetables because labor is cheap and they have a longer growing season. 
|
 |
Question
Why do people import goods?
People import goods because they can be produced more cheaply elsewhere.