Asked by Michelle Bradley on Apr 28, 2024
Verified
One global perspective on world trade views exports and imports as complementary economic flows. Explain this concept.
Economic Flows
Economic flows refer to the movement of goods, services, money, and resources among individuals, businesses, and nations, comprising the economic activities of a global economy.
World Trade
The exchange of goods and services and capital across international borders, which allows for economies to grow and standards of living to increase.
- Examine the function and influence of trade agreements and international trade organizations on worldwide commerce.
Verified Answer
NL
Neftaly LopezApr 29, 2024
Final Answer :
A country's imports affect its exports and exports affect its imports. Every nation's imports arise from the exports of other nations. As the exports of one country increase, its national output and income rise, which in turn leads to an increase in the demand for imports. This nation's greater demand for imports stimulates the exports of other countries. Increased demand for exports of other nations energizes their economic activity, resulting in higher national income, which stimulates their demand for imports. In short, imports affect exports and vice versa.
Learning Objectives
- Examine the function and influence of trade agreements and international trade organizations on worldwide commerce.
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