Consumer Prices

[PoliSciPulse]

I was trying to figure this out the other day: if there is something a nation imports, and its price is low, is that better for consumers? And if there is something a nation exports, and its price is high, is that better for workers/farmers/producers?

For example, cocoa, which the United States primarily imports, hit an all-time low in price a few years ago. What affect did this have on the American economy as far as consumer price is concerned?

 

[mrjurrs]

I was trying to figure this out the other day: if there is something a nation imports, and its price is low, is that better for consumers? And if there is something a nation exports, and its price is high, is that better for workers/farmers/producers?

For example, cocoa, which the United States primarily imports, hit an all-time low in price a few years ago. What affect did this have on the American economy as far as consumer price is concerned?

This has to do with the comparative advantage different countries have over/less than other countries.

In general exports create jobs and higher prices for the exported product in the country exporting.
Imports cost jobs, and lower prices to the consumer in the country importing.

 

[PoliSciPulse]

If we were going to simplify this, Ghana, which exports the crop, may have had a loss in jobs/their farmers paid less, but the American consumer would find the price cheaper? Do I have that right?