Why Do Many People Prefer Foreign Goods?
The world economy is built on international trade. The demand on foreign goods is quite high.. The realization of this can be seen in the spread of franchising of foreign brands. The advancement of transportation methods played a big role in providing access to foreign product for the whole world. In the past, buying foreign goods was a luxury and limited. Nowadays, there is a boost in the importation of products, and they appeal to consumers, because they help create jobs, are cheap, and their design holds cultural values.
Jobs are created as a result of buying foreign goods. Foreign products are cheaper, therefore, individuals are able to save up extra money and spend it on services. These can be various services such as maintenance, restaurants and entertainment. This means that these services are able to expand thanks to more money they receive from the customers which results in offering more jobs (Carreira). Economic analysts are advising people to buy imported goods in order for the county to flourish and decrease unemployment rate.
Foreign goods tend to be cheaper while maintaining the same quality which influences the customer’s decision to eventually drift away from buying local goods. People are going for a cheaper option if the quality is about the same. Therefore, foreign companies are winning over local businesses. One of the main reasons for the decrease of the international product price is the low labor costs in the country of manufacturer. Large companies, such as Apple, having their products manufactured in Chine is an example.
Foreign cultural integration into the imported products attracts consumers to them. People like the feeling of being a part of international picture. People tend to show off their imported goods to impress their peers and suggest that they belong to a larger picture. This behavior is true for some countries where people are less conservative. According to the article, “When you want to market a product to a foreign country you need to first determine whether it is an individualistic society (free-thinking culture) or a collective society (the peer group has the most influence on buying decisions)” (Anastasia). Therefore, foreign products may fail in countries where decisions are made based on a large group. The larger the group, the harder it is to integrate a product that differs in terms of culture and norms.
One may conclude that imported goods have a negative impact on local manufacturing because they are much cheaper and, therefore, are preferred by the customers, but, in fact, they encourage local manufacturers to stay competitive, use new marketing strategies and different improvements to either match the price of the foreign goods or justify the higher price of their own product. This helps the economy to maintain a balanced state. Buying imported goods is also a way to reach out to the other cultures and explore their design and product philosophy and can also help a person to identify themselves among their peers.
Works Cited
Anastasia. “Factors to Consider for International Marketing.” Cleverism.com. Cleverism Inc. Web. 02 Sep. 2015.
Carreira, Robert. “Buying Foreign Goods Saves American Jobs.” Fee.org. Foundation for Economic Education Orgnization, Web. 01 June. 2004.
