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1 EXPORTS AND IMPORT-REPLACEMENT <br /> 2 For the Pequot Lakes economy to prosper in the coming years,it is important that community leaders understand <br /> 3 the relationship between export industries(businesses that"export"goods and services outside of the community <br /> 4 and, in exchange, import" capital to the community) and import-replacement industries (those that serve the <br /> 5 local market). <br /> 6 It is easy to understand exports and import-replacement on a national scale. We export computer chips made in <br /> 7 I the United States to Europe.In this instance the chip is an export:that brings outside capital into the country.We <br /> 8 import strawberries from Peru. When we provide strawberries domestically instead of importing them from Peru, <br /> 9 locally-grown strawberries become an Import-replacement. American money now goes to American producers <br /> 10 instead of being sent to Peru. <br /> 11 The same thing happens at the local level.When someone from Pequot Lakes drives to Brainerd to buy furniture, <br /> 12 Brainerd is exporting the furniture to us.Our money goes to Brainerd's market and the furniture comes to Pequot <br /> 13 (imported).When that resident opts instead to purchase the furniture built in Pequot Lakes,then the furniture is <br /> 14 an import-replacement. Instead of buying it from someplace in Brainerd, the furniture was bought and <br /> 15 manufactured locally and the money stays in the community. <br /> 16 The following table shows how this relationship has worked throughout the history of Pequot Lakes. <br /> rt Industries Im•ort-Re'lacement Industries <br /> Agriculture/Tourism Agriculture,Tourism Services and goods for agriculture,tourists <br /> Era service,fishing experience and support services for the tourism <br /> and-to a lesser degree- industry(eg.fishing guides,bait stores, <br /> fish tourist retail sho.s <br /> ?''"- -a+A ; e b l z +�,+x ,,.. <br /> � sue° � :y 3, t � ;„u;•,� „v � �. <br /> Next Era Unknown Unknown <br /> 17 <br /> 18 The first way a neighborhood center like Pequot Lakes can create a prosperous local economy is to increase the <br /> 19 number of exporting businesses so as to bring new capital into the city. The second way is to create an <br /> 20 environment where competitive,import-replacement businesses can flourish. <br /> 21 OPPORTUNITIES AN C—I-EALLCNGCS - <br /> 23 in a public forum- arm cress t-hck op9inion of Reawet's -- <br /> 24 challenges. <br /> 14IPage <br />