International Trade – The Import-Export Effect on Economic Growth
In international trade, imports occur when a nation makes a purchase and exports occur when a nation makes a supply. Both concepts are crucial to the world economy. Customers are accustomed to seeing goods from all over the world, whether they are imported across international borders or sold in local grocery stores or retail establishments. The balance of trade is defined as the difference between the value of imports and exports. A country's trade deficit is defined when a country's imports are larger than its exports, and a country's trade surplus is defined when the reverse is true. Let's examine the entire theory of how the economy may be impacted by importing and exporting. Key Points A nation's GDP, exchange rate, and inflation rate can all be impacted by its import and export activities. The magnitude of a country's trade imbalance can have an adverse impact on its currency exchange rate. ...