Indifference curve with 5 products

Classified in Economy

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Members of the local business community often complain about the lack of support for locally produced goods. The publics indifference to local products is both the result of a lack of awareness and the huge variety of imported goods available. There is cleary scope for the goverment to do something about this situation. In this essay i will discuss two possible approches that could be taken.

The first of these is a public service advertising campaign. This would alert people to the many benefits of buying local goods. The campaign could be supported by labelling products as locally made. While this almost certainly lead to the advantages of buying locally, more could still be done to make local good more competitive in terms of prise.
A second tactic could be to offer subsides so that can be sold more cheapy. There are some drawbacks to this approach, however. Where, for example, is the guarantee that the producers would use this funding appropriately? This issue can be addressed by introducing a system of quality control. The public could thus rest assured that the local products offer good value for money.
In my view, advertising and subsiding local products must go hand to hand. Once awareness has been raised, community spirit might well lead people to choose local products. If, into bergain, they see that they are superior in terms of quality and price, there will be far less temptation to buy products from abroad.

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