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 inte