Introduction
There has been an influx of cheap imports in the United States as well as in the West. In the article by Fischer, "Why Buying Cheap Imported Products Is More Expensive For Individuals And Not Just Society", the author strongly advocates for local products putting forward the disadvantages that come about from importing cheap products into the country. Fisher begins by talking about the high rate of unemployment caused by the influx of cheap imports. Ferrier in her article, "This Is What Happens When You Order Ridiculously Cheap Clothing From Singapore - Suburban Turmoil" demonstrates the loss she encounters in buying cheap products from the internet.
In his article, Fischer talks about the effect of cheap imports on the economy of the country. He argues saying that the economy has been affected causing an imbalance in trade. Fischer asks a rhetorical question; "But are these lower cost products cheaper or is the low cost merely an illusion?" ( Fischer) He aims for the author to think about the question giving the possibility that these cheap products may not be so cheap after all. He also talks about that dumping has on the rate of employment and how the government uses the extra revenue to support the unemployed. Fisher also stresses that majority of the cheap imports are of low quality and are therefore more expensive than the locally made ones when the cost of repair is added to the original cost of the product. Ferrier, on the other hand, stresses that purchasing cheap commodities from a foreign online shop may be a waste of money and time since the products that are of a low quality and may be different from those advertised on the online website.
Fischer appeals to ethos by doing his personal research and collecting annual data on how the cheap imports affect the market. His article includes a response from people who give out their opinion on the economic effect of acquiring cheap imports. Ferrier on the other hands gives out her personal experience with the cheap imports giving out pictures of the products as proof that they were of low quality.
Background
China has enlarged its economy from the sale of cheap imports to other countries. It has been at the expense of other nations making their economies suffer. The majority of the consumers in the world opt for cheaper products. China can make cheap products because of the existence of cheaper labor, a stable economy and the existence of cheap raw materials. The majority of outputs made locally in the United States as well as the United Kingdom are expensive because of the costs that come about because of the high cost of production. Most of the cheap products that are usually produced are usually of low quality(Fischer). However, some products may be expensive but may also be cheap. However, speculation has been revolving that the cheap goods imported from Asian countries are of low quality.
Ferrier argues in her article that majority of the online products imported into the country are not the same ones that are advertised. The consumer might, therefore, become frustrated as he or she might have bought so many products and receive what he or she might have not expected. Cheap imports bring about the following outcomes.
Market
A huge debate has been on whether or not the cheap imports getting into the country are causing unemployment. Dumping is defined as infiltrating the market with cheap imports. The main reason why foreign companies can sell their products online and then ship them to our countries is that of the opportunities that come about with free trade. Chinese Companies can import their cheap products duty-free. This encourages them to continue since they have a potential market. Consumers buying products from these online companies hurt the local industry in that the local products are not purchased because they are relatively more expensive than the cheaper imported ones (Fischer). Dumping of cheap imports, therefore, causes the local industries to close down leading to a shortage in the domestic production since people are not purchasing them. The local companies, therefore, adapt predatory pricing to enable them to compete with the already cheap imports. Here the local businesses sell their products at a throwaway price. The local companies may also adapt this strategy when they are trying to sell off their products so that they close down. When this approach is adapted, most of the employees working in the local companies are at a risk of losing their jobs.
Dumping causes an imbalance in the deficits in trade. Fischer attributes this dumping of cheap imports as the reason why there has been an imbalance in trade in the countries of the west. He argues that Asian countries are the most responsible for this dumping. Most of the countries in the West have an imbalance in trade because of the cheap products that come from Asian countries. The government, therefore, spends a lot of money in supporting the unemployed people. Cheap imports may be beneficial to the consumer at that particular time, but they bring about a closure of the local industry.
Low-quality products
Ferrier argues that the majority of the products that are sold online and are of a lower quality than they appear on the internet. Some of them might be shipped to the consumer having defects. Clothes might be smaller, have holes on them and not fit the consumer. Ferrier in her article argues that the clothes she had bought online were of a low quality since all of them did not fit her (Ferrier). She argues that it would have been more beneficial for her to have gone to a local store and fitted the clothes since she would not have purchased the products(Ferrier). Buying products online from a store that abroad limits the consumer in checking whether the products have defects or if the products are what the consumer expected (Ferrier). This might waste the time the consumer has since the consumer might have to ship back the product and wait for another one. Other times the consumer might not be able to return the product, therefore, going at a loss.
According to Fischer, some cheap imports may bring about a contractual agreement between the consumer and the foreign company. This is mainly in electronics since they have a warranty. Some of the products may also experience default t(Fischer). The price of buying another spare part for the item might be the same amount used to purchase it. It might be therefore more expensive to purchase a cheap imported product since most of them spoil at a faster rate needing repairs.
Several factors contribute to the influx of cheap imports in the country. Firstly, the foreign companies advertise their products online through the use of social media and advertisements. These companies do not need to pay rent since they can just trade through the internet. Their products are therefore relatively cheaper. Secondly, the existence of free trade enables the foreign companies to sell their products cheaply since they are duty-free. Thirdly, there is the presence of cheaper labor and raw materials in their respective countries as it would be in many countries in the West. The majority of the cheap products they produce are of low quality produced by cheap raw materials. Coupled with the low prices, these companies can compete and drive out the local businesses.
I In conclusion both Ferrier and Fischer convince the reader that it is better to buy locally made products although expensive than purchase cheap imports that will be more expensive to maintain or will have defects.Local businesses have suffered by being driven out of the market by cheap online products that have been imported (Fischer). The products that the local businesses produce are regulated by their government in that these businesses should produce products that are of a high standard. It, therefore, requires these companies to produce high-quality products. The cost of production is usually the main reason why local products are expensive to the consumer. The cost of putting up a store is also expensive because of the cost of taxes and rent. Consumers should, therefore, promote the local products to make sure that the local industry is not killed off (Fischer). The negative impact of the economy as earlier mentioned is one of the reasons why consumers should avoid the cheap imports. Secondly, the cheap imports that are sold online might have certain defects and the product imported might be quite different from the original product advertised on the internet. It may, therefore, be advantageous to the consumer to buy expensive local products then purchase cheap imports because these imports might need repairs and prove to be more expensive than the local products.
Works Cited
Ferrier, Lindsay. "This Is What Happens When You Order Ridiculously Cheap Clothing From Singapore - Suburban Turmoil". Suburban Turmoil. N.p., 2014. Web. 13 July 2016.
Fischer, Tristan. "Why Buying Cheap Imported Products Is More Expensive For Individuals And Not Just Society". History Future Now. N.p., 2014. Web. 13 July 2016.
