Why do you think the policy on sugar in the united states is so heavily slanted towards sugar producers at the expense of candy manufacturers and consumers? what can manufacturers do? what does your response tell you about the benefits of free trade?

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kcarr1732 kcarr1732

10-10-2017
Business

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Why do you think the policy on sugar in the united states is so heavily slanted towards sugar producers at the expense of candy manufacturers and consumers? what can manufacturers do? what does your response tell you about the benefits of free trade?

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andriansp andriansp · Answer 1 · 2017-10-23T14:50:34+02:00

Because sugar is relatively cheap and always used in large quantity, the amount of consumers' demand wouldn't affect the supply of this product, which make sugar inelastic.
For this certain product, manufacturers could only reflect on social implication when determining the price of the product, and produce it with acceptable margin.
The free trade make each countries able to take on resource that unavailable in that country and focus solely on the product that give the country competitive advantage