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Both imports and exports are part of gross domestic product (GDP) and significantly influence the economic health of a country. The United States imports many
Both imports and exports are part of gross domestic product (GDP) and significantly influence the economic health of a country. The United States imports many products from other countries. There are several reasons the US chooses to import rather than produce products. Comparative advantage is one of those reasons. For every product we produce there are trade-offs because economic and human resources are consumed, and both are scarce resources. On the other hand, when products are imported, US dollars flow out of the country. The goal is to balance production and imports to the benefit of the economy. In addition to the Intellipath lessons from Week 2, please take a look at the following video: Comparative Advantage Questions: What is the economic impact of importing goods that the United States could produce? Identify a product that could be manufactured in the United States that is currently imported. Explain the role that comparative advantage plays in choosing whether to import the product rather than produce the product in the United States
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