Lesson 6 Discussion

After watching the video: Michael Shuman on Going Local: Creating Self-Reliant Communities in the Global Age, complete the following critical thinking questions – support your position(s) with cited academic/peer reviewed and credible resources. After answering the questions, respond to at least one other classmate's post with substantive (challenging) information/questions/additional sources.


This requires a post answering the questions below:

Answer ALL Questions:

1. Why have imports?

2. Why limit imports?

3. How would a city or region that imported less benefit from limiting imports?

4. What types of products could be more locally produced? Why? How?

5. In what other areas would self-reliance be a good idea? (other "essentials")

6. What are local examples of self-reliance or import substitution? (farmers' markets, local fairs with local products)

7. Does self-reliance mean no trade?

8. In what ways do current laws/regulations make it difficult for businesses to stay local (not export) their labor/resources/businesses? Be Specific.



When replying to your classmates' posts:

Read your classmate's post and reply to no less than two of your classmates and a question. 

Your question should be one of the following three types:

· Clarification Based: This kind of question helps the writer by asking your peer to clarify points that you think could be more fully explained.  

· Evidence question – When a writer states something as fact rather than personal opinion, your peers argument is stronger if they cite evidence that the fact is true. Facts can be evidenced, in approximate order of strongest evidence to weakest, (1) by citing trustworthy data, (2) by citing the opinions of experts, (3) by citing repeatable personal experience, or (4) by citing common opinion. This kind of question helps the writer by asking for evidence if the student states something as fact but doesn't cite evidence.

· Hypothetical question – This kind of question helps the writer by asking your peer to test their argument by applying it to a situation that you specify. 

Posts needing a response:

Student 1:

Imports are standard when a country's domestic industry cannot produce a product or service as efficiently or inexpensively as the exporting country. Exporting raw resources or commodities may also be necessary if a country does not make them domestically (Eaton et al., 2022).

To protect their home markets from foreign competition, many nations impose stringent limits on imports. A protective stance seeks to safeguard existing interests. This is typically done to appease domestic political demands inside the country. The impediments to international trade come in a wide variety of forms. Protective tariffs, import quotas, trade embargoes, and voluntary export limits are the four most common forms. Protective tariffs and taxes on imported goods are the most prevalent trade obstacle. Governments use tariffs to generate income and shield home sectors against cheaper international imports. Tariffs are simple to implement since they may be applied to imported goods before they enter the country and are generally unpopular among the general public. While some domestic producers may benefit from protective tariffs, consumers do not. Costs for imported items are increased because of tariffs. It allows domestic producers to raise prices to the same level as the imported goods rather than lowering prices to compete with them. As a result, consumers pay more for everything because of tariffs (Su et al., 2022).

When countries trade with one another, it benefits everyone involved. Consumers in the importing country have access to a wider variety of goods, producers in the exporting country benefit from lower prices due to more competition, and everyone wins. Although it would appear that everyone would benefit from free trade, some have contended that not everyone does. It is crucial to remember that import taxes are borne by domestic customers rather than levied on the foreign country's exports. The result is that consumers will pay a higher price for imports, but producers who rely on imported components or other inputs will also have to pass the cost on to buyers (Eaton et al., 2022).

Many European countries have run national campaigns in recent years praising the "benefits" of supporting local economies by purchasing goods made in the region. The general idea is that buying local food is a great way to give back to the neighborhood and boost small businesses. Nonetheless, we should be aware that there are other reasons why buying locally-grown food wherever feasible is crucial. Just what does it entail for food to be farmed locally? The simplest explanation is that the item is not being shipped over vast distances. This usually indicates that the food you eat does not come from factory farms. The coming holiday season is the year's biggest gastronomic event, and it is customary for people to prepare their favorite meals and serve them with their preferred beverages to toast the season and show their appreciation for their loved ones. It is important to remember the benefits of reaching out to and sourcing from nearby businesses right now. Thanksgiving is a great time to start buying from local farmers and artisans to express appreciation (Su et al., 2022).

Many countries in transition or emerging markets subscribe to the economic theory of import substitution industrialization (ISI) to lessen their reliance on wealthy countries. The strategy is to ensure the success of domestic startups by providing a nurturing environment where they can grow into robust industries that compete with imports. According to ISI, this results in economically sustainable communities and nations.

An economy is said to be "autarky" if it does not rely on external sources for growth or development. Indian economic independence was replaced by colonial economics after the British Empire's invasion (Eaton et al., 2022).



Eaton, J., Kortum, S. S., & Kramarz, F. (2022). Firm-to-Firm Trade: Imports, exports, and the labor market (No. w29685). National Bureau of Economic Research.

Su, B., Ang, B. W., & Sun, Y. F. (2022). Input-output analysis of embodied emissions: Impacts of imports data treatment on emission drivers. Energy Economics, 107, 105875.

Student 2:

Imports promote competition in local and foreign markets (Representative, 2022). There are some local organizations who feel that no other companies will supply equivalent products. The import will pressure this business to diversify and innovate high-quality items. 

The limit of imports is primarily a protection to local industries. Even though, these practices have also caused unfair trade practices (Siripurapu, 2021).  

In my experience, I send boxes to my family in Colombia, but I am limited to up to six items of the same type at a time. The value of the box must be below $200.00 or there is a 30% tax surcharge. I recently visited and compared the prices of the products if bought in the United States, but they were much higher. It is better to buy here and ship them, and I am saving money. The prices are higher due to the higher tariffs that importers must pay in Colombia. 

The benefit would be that since there are no added options, the purchase must be from local industries. Furthermore, the organizations will become more efficient when being pressured to increase profits and be competitive in similar markets (McDonald, 2022). 

There are fruits that only grow in specific regions. For example, I just went to Colombia and wanted to try all the fruits I used to eat when I lived there. There is a fruit called “Zapote” but is only found in certain cities. The same fruit also called “Zapote” is different in shape and flavor, but it is grown in the coast of Colombia. Some local products might need a different type of soil to grow. The products can sell at another region in Colombia or in another country depending on trade laws and regulations at a much higher cost. There are exotic fruits sold in the United States such as a “Dragon fruit” which costs about $6.00 each. 

Self-reliance would be beneficial for a farm to promote at a Farmer’s market. There are many businesses that have innovated with organic products such as hand-made soaps, candles, and freshly made fruit pies. There are government problems that support the Farmer’s Markets in different cities (Government, 2022). 

There are trade agreements still in process within different industries in the same region. A manufacturing company sells the raw materials to a distributor or vendor. There is still a demand for business even if it is just locally. A farm might have a large inventory of a product and they need to sell it to keep the business afloat. There are also trade shows where companies use networking to grow their customer base. Many good business relationships are born at fairs, Farmer’s Markets and expo shows. 

The taxes and tariffs that must be paid make it difficult for a company not to depend on imports. Many companies must buy raw materials from abroad to increase their profit margin. The wholesalers provide tax cuts, reduced shipping charges and with the trade agreements, the governments ease the transactions at a reduced rate. The outsourcing of some services also reduces costs in customer service help.  




Government, A. N. (2022, 11 04).  New York State Agriculture Commissioner Announces $700,000 Available to Support New York's Farmers' Markets. Retrieved from Department of Agriculture and Markets: https://agriculture.ny.gov/news/new-york-state-agriculture-commissioner-announces-700000-available-support-new-yorks-farmers

McDonald, B. (2022).  International Monetary Fund. Retrieved from International Trade: Commerce Among Nations: https://www.imf.org/en/Publications/fandd/issues/Series/Back-to-Basics/Trade

Representative, T. O. (2022, 11 29).  Economy & Trade. Retrieved from The Office of the United States Trade Representative: https://ustr.gov/issue-areas/economy-trade#:~:text=Moreover%2C%20imports%20increase%20consumer%20choice,both%20domestic%20and%20foreign%20markets.

Siripurapu, A. C. (2021, 10 8).  Council on Foreign Relations. Retrieved from The Truth about Tariffs: https://www.cfr.org/backgrounder/truth-about-tariffs

Here is the Cengage website to access the book: https://www.cengage.com/dashboard/#/my-dashboard/authenticated?page=

The book is called: International Business Law and Its Environment.

The email is .

The password is CGarrison001!!!

To access the book for reading, click on the BUL 4461 class, then Lesson, followed by Chapter, and then the first option for reading.

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