It depends what on products you have in mind. If it’s food, like fruits and vegetables, then yes. If it’s technology and things that are usually manufactured, no.
It depends on what you are purchasing and where you reside. Sometimes I travel at least 30 miles to find better clothing deals. Sometimes I find better deals at the supermarket or drug store than discount stores. You may be able to find coupons, buy one get one free deals, etc. Often you can find great online deals for electronics, clothing, and other items.
Buying locally grown produce should be cheaper, since the transportation costs are lower than food grown halfway across the country. However, many non-local, “mass produced” food products get governmental subsidies in some form or another, making their prices lower.
On principle, yes, they should. As has been mentioned, the cost of transportation is less than for goods that were produced in other areas. In addition, though, there should be a savings in your taxes, as a company in your town or area adds to the tax base, lessening the burden on individual taxpayers.
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