Final answer:
Marketers of domestically manufactured products may import components to remain competitive. They face the challenge of pricing pressures from imports and may be influenced by government strategies and trade policies. Balancing these factors is crucial for maintaining cost-effectiveness and market presence.
Step-by-step explanation:
Marketers of domestically manufactured finished products may be forced to switch to importing of certain components to keep costs and prices competitive. In a global economy, manufacturing jobs may shift, for example from Michigan to Mexico, to maintain competitiveness. Governments that cannot compete in a free-trade environment might use trade barriers like import tariffs, import quotas, and safety measures to protect domestic industries. The strategy of import substitution industrialization has been used in Latin America to limit the importation of manufactured goods and protect nascent industries until they can compete globally.
When imports are sold at very low prices, domestic firms may find themselves unable to match these prices without incurring losses. Government regulators sometimes deem such practices as unfair dumping, leading to the imposition of tariffs or import quotas after industry complaints. This demonstrates the complexities of measuring true cost of production and market competition in different regulatory environments.
Overall, marketers may consider sourcing components internationally as a means to optimize production costs and maintain market viability amidst local and international challenges. The decisions made in this context are influenced by market forces, company strategy, and government policies affecting trade and production.