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Purchasing National Products - Assignment Example

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In the paper "Purchasing National Products” the author discusses the issue that it is crucial to buy goods produced by your own country to support its economy and increase the level of prosperity. Ever since the economy has started its increasing development…
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Download file to see previous pages The theorists are the adherers of mercantilism and protectionism economic theories. Mercantilists claimed that with the growth of import foreign goods start filling out a state’s market, pushing out national products. This obviously leads to the decrease of national prosperity; the reason is that people start spending money on purchasing foreign products, so national treasure flows to foreign companies. The only way to save economical balance that theorists saw was making national production stronger to be good enough to become competitive (Ehrlich 378). As far as we consider the United States, what we can see is a developed free market with a diversity of qualitative products and economic capability to form new firms and companies. The main target is to make people buy domestic producers’ goods. From mercantilists’ position, this aim can be reached through the limitation of import and increase of national product’s quality.
The researches show that the origins of big corporations are mercantilists’. The main point is that corporations were supposed to increase national wealth exporting their goods abroad, which would drain capital into their countries (Ekelund and Tollison 716). But mercantilists’ expectations failed, because the growth of corporations didn’t lead to economic balance, but created economic misbalancing monopolies which worked for themselves and not for the national economy.  ...Download file to see next pagesRead More
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Purchasing National Products Assignment Example | Topics and Well Written Essays - 2000 words.
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