How does import and export affect the economy ?

Hello friends lets understand how import and export effect our economy in different ways  

find below reasons

A country's imports and exports can affect its economy in several ways, including:

Local markets: Imports can weaken local markets, while exports can strengthen them.

Global markets: Imports support global markets, while exports sell quality goods on global markets.

Balance of trade: A country's balance of trade is the difference between its exports and imports. A trade surplus, which occurs when a country exports more than it imports, can indicate a healthy economy.

Exchange rates: A country's balance of trade can affect its currency exchange rate. A country that exports more than it imports increases demand for its currency, while a country that imports more than it exports decreases demand.

Inflation and interest rates: Inflation and interest rates affect imports and exports through their influence on exchange rates. Higher inflation rates can lead to higher interest rates, which can impact exports by affecting input costs.

GDP: A country's importing and exporting activity can influence its GDP.

Employment: Exports can create employment opportunities.

Competitiveness: Exports can promote competitiveness

Key Takeaways  from this 

A country's importing and exporting activity can influence its GDP, its exchange rate, and its level of inflation and interest rates. A rising level of imports and a growing trade deficit can have a negative effect on a country's exchange rate.

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