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What happens when there is a surplus of imports brought into the U.S.? Cite a specific example of a product with an import surplus, and the impact that has on the U.S. businesses and consumers involved.
Weegy: Is China’s low wage-advantage responsible for its enormous trade surplus with the U.S.? China’s low-wage advantage does provide some advantage in international trade, but as has been discussed in “Labor”, the huge number of U.S. [ imports from China are in labor-intensive products (toys, apparel, shoes, furniture) - industries that have largely moved outside of the U.S. for many years now. While China imports are only 7.5% of American spending on all consumer goods, they constitute 80% of toys, 85% of footwear and 40% of clothing that Americans buy.[5] It is therefore not a question of Chinese exports beating out U.S. exports of the same goods. On a macro level, there is not too much overlap between Chinese and American production, as ( from the U.S.-China Business Council shows. If anything the U.S. exports to China of skill- and capital-intensive goods such as semiconductors and microprocessors, aircraft, machinery, and petroleum and iron-ore[6] has the effect of raising the relative wages of skilled labor in the U.S. In the end, we are almost talking about apples and oranges here. It’s just that we buy more of their apples then they buy of our oranges. ] (More)
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Asked 8/23/2012 7:10:45 PM
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What happens when there is a surplus of imports brought into the U.S.? Cite a specific example of a product with an import surplus, and the impact that has on the U.S. businesses and consumers involved.
Weegy: Whenever there is a surplus of products, regardless of origin, the price drops. Even to the point of selling at a loss, the holder has already paid the invoice and taxes, but still has to pay storage, [ the longer it holds the product the more money it costs, selling at a loss moves the product out of storage and clears the store front for another product. Take the case of car sales, do you really think that cutting $10,000 of the price of a $40K car makes sense if you can sell it for $40K. ] (More)
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Asked 8/23/2012 7:14:38 PM
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