ECONOMICS
TRADE EXCHANGE AND INTERDEPENDENCE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Imported goods would become cheaper for local people.
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The country would definitely become poorer.
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The price of fish sold as exports would become cheaper.
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Tourists to the country would be discouraged by higher prices.
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Detailed explanation-1: -A positive balance of trade, also known as a trade surplus, occurs when a country exports more goods than it imports. This means that the country is earning more from its exports than it is spending on its imports, and it is generally seen as a sign of economic strength.
Detailed explanation-2: -International trade not only results in increased efficiency but also allows countries to participate in a global economy, encouraging the opportunity for foreign direct investment (FDI). In theory, economies can thus grow more efficiently and become competitive economic participants more easily.
Detailed explanation-3: -Export Trade. Export trade is when goods manufactured in a specific country are purchased by the residents of another country. Import Trade. Entrepot Trade.
Detailed explanation-4: -1) Impact of Inflation: 2) Impact of National Income: 3) Impact of Government Policies: 4) Subsidies for Exporters: 5) Restrictions on Imports: 6) Lack of Restrictions on Piracy: 7) Impact of Exchange Rates: