Band 7+: Some consumers are increasingly choosing to buy goods that are produced in their local area, rather than imported goods. What are the reasons for this? Is this a positive or a negative trend? Give reasons for your answer and include any relevant examples from your own knowledge or experience.

Nowadays, in many countries there is a trend of increasing consumers’ preference to acquire nationally produced goods instead of imported ones. This economic situation is caused by a number of factors, especially, support for national producers and the domestic economy. This is a negative trend for the global economy, but for the economy of a particular country it is definitely positive.

One of the obvious reason for the growing consumer interest in domestic goods is related to the protectionist policy of their state. In order to support national production and its development, the state imposes high customs duties on imported goods. Due to this fact the cost of imported goods on the domestic markets becomes higher than the cost of the domestic goods. Driven by the desire to save money, consumers choose to purchase goods produced in the country. For instance, the Argentine government has set a thirty per cent customs duty on imported meat products. This policy has increased the competitiveness of local farmers and influenced consumer product choices.

Another reason for this trend is consumer trust in national producers. It is considered that domestic products are of better quality than imported ones, in particular, agricultural products and medicines. Consumers understand and trust domestic production. Moreover, the transfer of goods within the country takes less time, which preserves the quality of the products.

So, this is a positive trend for national economy and society as it promotes the development of local production. Escalated demand for domestic goods leads to increased national production and job creation, thereby achieving economic growth in the country. However, for the global economy this is a negative trend as it leads to a decrease in the volume of international trade. Another drawback is the reduction in the diversity of goods in domestic markets. The abandonment of the international division of labor will lead to shortages of vital goods in developing countries. Therefore, any economic trend has its pros and cons.