GMAT Essays (AWA)

As the world is becoming more globalized than before, companies are producing a variety of goods to make profit in the business environment. Some of these products companies might be expensive or cheap. Generally speaking, people always think that the cheapest product is always the most economical product. I strongly disagree with this opinion. We can not think that the price of the product is only factor that determines whether or the product is economical. We have to take other costs related with the product into consideration.

First of all, there are many factors that determine whether or not the product is economical. These factors can be price, maintenance cost,durability of the product. Let us imagine a car we want to buy. The price of the car is much lower than the price of any car. However, we need to spend too much money for its maintenance cost. Consequently, the overall cost of car we want to buy exceeds the overall cost of others.

Secondly, we need to understand the profit maximizing strategies of corporations. Most corporations sell cheap products in order to make a huge amount of profit. Because, cheap products can not last too much and cheap products are often lack of quality. Consequently, consumers who bought cheap products will again buy the same product. As you can think, corporations will make a huge amount of profit through the sale of cheap products.

In summary, I strongly believe that the overall costs of products is the main factor that determines whether the product is economical or not. We need to take overall costs of product into consideration, when we want to buy the product. I do not why some people disagree with my opinion. I wish they felt the same way.