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5 Additionally, many corporations have manipulated the term in ways critics call "local-washing". 6 Alternative viewpoints edit The argument that "buying local" is good for the economy is questioned by many economic theorists. They argue that transportation costs actually account for a fraction of overall.
H. (2006). The small-mart revolution: how local businesses are beating the global competition. San Francisco, CA: Berrett-Koehler. "Cage Match: TINA vs LOIS ".
2 The second potential benefit is creating better working conditions. Nonetheless, while diverting purchasing from developing countries to local farmers helps build the local economy, it can lead to worse conditions for poor farmers in developing countries because it removes potential buyers from the market.
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Despite this, distribution costs of expansive food trade must also be factored in; with increasing gas prices, it becomes more expensive to ship food from outside sources. Import substituting edit Main article: Local ownership import substituting In 2006, Michael Shuman proposed Local ownership import substituting.
Historically, there have been so many incentives to buy locally that no one had to make any kind of point to do so, but with current market conditions, it is often cheaper to buy distantly produced goods, despite the added costs in terms of packaging.
Transportation contributes to environmental contamination in addition to the pollution caused by chemical inputs in the growing phase. Of course, locally produced goods are not always more energy-efficient ; local agriculture or manufacturing may rely on heavy inputs (e.g., industrial agriculture ) or energy-inefficient machinery.
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