Question

The current administration has been attempting to reduce the trade imbalance (exports vs imports) and revive some basic manufacturing/mining industries in this country. What are some of the pros and cons for businesspersons and consumers of this initiative?

Answer 1

The initiative to reduce the trade imbalance and to encourage basic industries in the country is a great help for local businesses whose business had reduced due to excessive imports and their relatively cheaper prices. This opportunity will help them prove that local businesses can not only provide much better quality but also can provide at low prices. The economical value of the country increases which would help these businesses to develop their business and export them to other countries. However this will hinder some businesses which depend on imports and these business entities might go into losses if local products are given more importance. Consumers will be highly benefited with reduced prices and start encouraging local products and businesses. Thus the imports and exports will be balance as the country will be able to send it's goods to other countries and get some goods from other countries which is very important sign for a developing country.