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Importing

In: English and Literature

Submitted By slangford22
Words 1015
Pages 5
ENG 115
2013
Cause and Effects
Samantha Langford
December 19, 2013
Assignment 3.1
ENG 115
2013
Cause and Effects
Samantha Langford
December 19, 2013
Assignment 3.1

Importing most materials for automobiles from foreign manufacturers can hurt the economy. Importing materials for automobiles from foreign manufacturers has many pros and cons. Some of the pros of importing materials are that it improves the trade relationship between importing and exporting countries. Also, capitalizing on the competitive advantage of exporting countries to get cheaper raw materials for production. The cost of buying cars reduces as imported automotive parts improve the current supply and production of value added automotives.
Some of the cons are that importing more than the required or stipulated volume of automotive parts may add up to the reasons why an economy may suffer a trade deficit. In this case it means that the country's importation value far exceeds its exportation values. In countries where the same automotive parts that are imported are also manufactured locally, stiff competition from the uncontrolled importation of these materials may put the indigenes out of business. This immediately affects domestic production and employment. The effects of importing automotive materials depend on the current situation of the particular country. The overall effect may be positive for some while it is negative for others. The effects of importing automotive materials depend on the current situation of the particular country.
U.S. imports of auto parts from China and South Korea have grown more over the past three years than auto-parts imports from any other country. While trade deficits with all countries fell in 2009, a more appropriate comparison is to examine changes in trade since the year leading up to the recession, 2007. Between the last business cycle peak...

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