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this post was submitted on 07 Sep 2023
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If they imported some ingredients before and then had to switch to local suppliers after the pullout ... doesn't this also benefit Russia, since now all of the production is national and they require less imports?
It is not like making food or soft drinks is really high tech. At worst, it is just going to taste a bit different if the ingredients are different. Or other, already local companies might gain market share.
That depends on if they can keep their customer base.
If your local McDonald's left town and a place named Burgers-R-Us took its place, would the new restaurant sell as many burgers as the McDonalds did? I doubt it. McDonald's devotes vast resources to build its brand and get customers into their restaurants. Smaller companies don't have those resources.
Good point. Thanks for your insights.
Despite what people say, imports aren't necessarily a bad thing. I mean it's literally stuff that's coming into a country that the people of that country now have. Having more stuff is good. Having less stuff is bad.
Trade means the people that can most efficiently produce a certain good in a country most efficiently do that while the people in your country who can most efficiently produce another kind of good do that. Russia having to produce all their goods locally is an economic inefficiency.
And yes, that economic inefficiency means more jobs for Russians. And that's great! I want Russians to be working in jobs to supply their McDonald's substitute instead of working on a factory line making tanks.