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AAEC 2305 Fundamentals of Ag Economics - page 24 / 27

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(continued)

Exporting is beneficial in that jobs are created and profits are generated.  The income produced can be used to buy foreign or domestic goods.

Why would consumers want to consume foreign goods?

1) It might not be possible to produce the foreign good at home.

2) It might be cheaper to purchase goods from another country.

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