🚧 Exports and Imports | Protectionism, Tariffs and Who Benefits From Them 

The United States used to be the recipient of around 40% of Nigeria's crude petroleum. Then, we had new innovations such as hydraulic fracturing that allowed us to produce it at home at a more affordable price. In this case, had we enacted protectionist policies such as tariffs, we would not have been forced to innovate and pioneer new techniques. However, one issue that I would have with this manner of thinking is what if we face other countries such as China that enact their own protectionist polices? In that case, how should we react? The issue with the global market is that we can have a national market that is a free market but the global market is dictated by the whims of individual countries which means we are essentially opening up our free market to a non-free market.

Wow, I was stuck on this concept for like an hour. You beautifully dumbed it down for me. Subscribed!

Good job econ Clips you basically see the economy the same way I do. Money just make bartering easier.

This was explained very well. Thank you!

Very informative channel and good animation 😀

Many importers and entrepreneurs have already lots of bad experiences in some fulfillment centers. Mishandling of logistics and delays are only some of them. In Fulfillmen, we keep on upscaling warehousing technology to ensure there would be no room for any mistake and to secure that all of the logistics remain protected and unblemished. We offer warehousing solutions that cater all big brands to small e-commerce companies.

Thanks.

"No government is needed" What about when producers evade some of the costs that come with producing certain things? Like environmental costs, they may not directly show up on a balance sheet but they're still there and have the potential to cost societies a lot of money. Citizens then end up involuntarily subsidizing the private profits of producers.

The world tried protectionist trade policies once before during the Great Depression, and it failed miserably. In the end, it ends up hurting the consumers. However, countries do have some form of protectionism, from time to time, especially to protect 'Infant Industries' and guard against 'Dumping'. But most of these policies should be time bound, otherwise it ends up hurting the very people whose interests you are trying to protect.

well,but patents,intellectual property,petrodollars combined with fiat currency and pre-existing capital kind of complicates the "i pay with my production" idea.because,well,it entirely ignores a rather important factor,i.e the rate,or how much production. also there is the issue of how do you measure "production".because market is definitely not fair,considering all the above mentioned machinations.

In some cases, ie. USA, almost all manufacturing jobs are leaving to go to developing nations like Thailand. Its only more profitable there because of the trade off for worse work conditions and environmental harm. If it wasn't masked by the currency some people wouldn't buy the product. Also if there are no manufacturing jobs here there would be massive unemployment with only a few being able to find better jobs. Please correct me if im wrong. P.S. First!!!

5:50 ^ This is the ultimate goal

Great vid

Thanks for the piece corporate ownership class.

NICE EDITING

Ah yes, being served bread rolls whilst lying shirtless on a beach somewhere

In its ideal, capitalism is the best system the world has yet conceived for generating freedom and happiness. Hopefully we can evolve to realize its potential.

There is however an exception to this rule. We shouldn't want to be fully dependent on another country to be fed. Edit after 4 years: there are more strategic goods than food.

Looking for RU-vid presentations that discuss pros/cons of importing everything.

Great channel but so less views 😞😞

We have a lot of oil actually, in Alaska

True. Free trade is the fast track to utopia for all (on average).

NICE NO CAP

Great vud

People who think that export is a goal of economy, consider that the purpose of life is working. That's the point.

The only other thing I will add is that there is no political will for non-regulation because every time a person loses a job they complained to the government

Can someone send this to The Donald?

Hw u made this video...

unsa tong orange2 wako kasabot ato

aaaaa ok

5:46 the business in Tribeca went bankrupt due to LES competition. Seems about right

8:16

Central banks around the world have agreed to finance our reckless spending under fixed exchange rates & propping up the bond market with printed money. We get most of our produce from imports & don't produce much of anything, especially that the world demands. Nor do we have any plan to in the future. In other words, our entire economy is a bubble built on inflationary credit, at the world's expense, & we have no surplus coming anytime soon. The world would abandon us, if their job markets weren't built on fueling our consumption lol. Plus they have a huge amount of public & private dollar denominated debt, & will get sanctioned out of the global economy if they don't comply with the US's wishes. Simply look at what they're threatening to do to el salvador.

That is true, but traditionally, money was in units of valuable metals or gems that had value in and of themselves. This is why on a dollar bill it is called only a receipt. It is a receipt of something of value. The Us dollar is gold backed, this is why gold and silver are always promoted during economic crisis.

Bullshit, is every1 in the U.S. waiters and waitresses now, what about all of the people who work in industry & manufacturing? If u import everything, the locals won't need 2 buy things made locally. If exporting is a "necessary evil", as if we shouldn't do it, then the things made locally won't need 2 be made. Which creates massive unemployment, like when Clinton destroyed manufacturing in the U.S. w/taxation, causing them 2 leave the U.S. It's stupid 2screw our countrymen 4 socks a few cents less.

this vid did not help me at all

From Girchi gang where you at?

didnt help at all!

This is bordering on propaganda

This video is so simplistic and unrealistic. 1. Not everyone is in good term with each other. Every nation have their own interest, usually due to geography and demography, also add historic grievances. If you rely too much on someone, it will become your weakness. Your potential adversary can use it against you. 2. There are always more than one supplier. Let's say your country is good at producing machinery, you won't be the only country doing that. 3. The more you produce something, the better you get at producing it. So there's is strategic value on holding key manufacture sector. If you let other country build their own production by dumping their product on you, you might lose technological advantage in that manufacture sector. 4. In many cases, you need several ingredients or materials to produce something. Let's say you are good at producing high quality car. But to produce car, you need steel, electronics, and plastics. You can produce the electronics, but you need to import steel and plastics. Now your steel supplier want to start making car also, and at first they import electronics from you. So it goes as expected. But then they want to start to make their own electronics, and to do that they reverse engineer your electronics, and ignore your patents. What you gonna do? If you allow that, they will be able to build cheaper car and you will lose your place at this supply chain as no one will buy your car and your electronics.

I would agree if if the loss of domestic manufacturing didn’t result in a bunch of unemployed stupid people pulling welfare.

This video misses certain issues: 1. The southern country may have lower national average wages than the Northern one. So importing from the south pushes down the wages of those in the north in order to compete on wage costs. 2. The loss of industry in the North due to importing goods from the South at a cheaper cost has to be paid for. So, the gains to the consumer in "cheap goods" are offset by a rising welfare cost as unemployment has to be paid for using dole money. Increased unemployment means higher crime and that means people having to spend more on security measures. And because you did not mention these downsides to international trade and were too one-sided you get a "Dislike" from me,.

This video is *extremely* biased towards Libertarianism and Austrian School of Economics yet pretends it is just a basic Economics 101 video. Please state your biases by saying something like "Libertarians believe..." at the beginning of your videos. I would say the same thing to liberals claiming Universal Basic Income will magically solve everything without disclosing their political beliefs and passing it as objective facts. I also found what I believe is clear logical fallacy in your video: at 2:41 you state: "We want to import more because it means getting all the cool stuff from abroad. Export is a necessary evil that allows us to pay for the goods. If we would be able to continually import, it would be better for us." Glossing over how you seem to be implying stealing is ok, only a few sentences before this you said "I would be most happy just lying belly up, having free bread rolls served to me." There is a heavy tone of "Well of course you can't have things for free you lazy bastard!" sentiment to the free rolls line. You clearly think getting things for free a morally wrong. I'm inclined to agree with that sentiment. Yet trying to import foreign goods for zero cost is admirable? Your moral convictions are completely at odds with one another in my eyes. Regardless of what you think of my example, it is quite disingenuous to not state your heavy biases at the beginning and act as if you are just stating basic objective facts rather than political opinions. And make no mistake, believing there is *never* a time for tariffs regardless of circumstances is definitely a political opinion. On a lighter note, I do like the animation.