Comments on: 3 reasons why you shouldn’t buy local https://www.tradeready.ca/2016/trade-takeaways/3-reasons-why-you-shouldnt-buy-local/ Blog for International Trade Experts Mon, 09 May 2016 20:09:25 +0000 hourly 1 https://wordpress.org/?v=6.6.1 By: FITT https://www.tradeready.ca/2016/trade-takeaways/3-reasons-why-you-shouldnt-buy-local/#comment-264 Thu, 18 Feb 2016 18:47:00 +0000 http://www.tradeready.ca/?p=17255#comment-264 In reply to Former Sega fan.

Thanks for your comment, Former Sega fan. Michelle wanted us to share the following response:

I’m a Former Sega Fan too! (WonderBoy in MonsterLand)

Thanks for your feedback. The dynamics might be a bit different in Barbados than Canada. As I mentioned in the article, the GDP per capita has gone up, even when accounting for inflation. The factory jobs were never the large factory jobs of Canada and the services jobs are those namely in the tourism industry. It’s worthy to note also that up until very recently Barbadians benefited from FREE tertiary education (it’s still quite cheap) therefore many of the jobs in the services sector are skilled. Secondly, in Barbados to make anything, almost everything (i.e. raw materials) must travel in and then back out (i.e. finished products when exporting) and the cost of energy and labour is very high.

]]> By: Former Sega fan https://www.tradeready.ca/2016/trade-takeaways/3-reasons-why-you-shouldnt-buy-local/#comment-263 Thu, 18 Feb 2016 12:30:00 +0000 http://www.tradeready.ca/?p=17255#comment-263 An interesting article, and you make some good points – buying local isn’t always the best choice. As one who works in international trade, I’m certainly a believer in it! There are, however a couple dynamics related to “buy local” that weren’t mentioned. First, your breakdown of GDP by sector leaves a significant fact unmentioned. How do salaries in the services sector compare to salaries in manufacturing? I strongly suspect that while the unemployment rate has lowered, so has the average wage. I know I would not want to trade a factory job for a retail one. Second, in my experience the “competitiveness” of foreign companies is sometimes nothing more than an illusion created through currency exchange, and in China’s case, an artificially deflated currency. I have trouble believing that it is truly cheaper to manufacture a t-shirt in China and ship it all the way to North America, then it would be to manufacture it in North America. It looks that way because of the currency exchange, but if that factor was removed I suspect Canadian shirt manufacturers can compete with Chinese ones, and they have a huge advantage: they don’t have the increased costs (including environmental impact) to move it across the ocean.

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