If a nation exports much of its output but imports little, will it be better or worse off? How about the reverse? What if a nation exports little but imports a lot?

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Boston Henson

Business

3 September, 15:56

If a nation exports much of its output but imports little, will it be better or worse off? How about the reverse? What if a nation exports little but imports a lot?

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Hanna Tanner · Answer 1

This is the situation of countries like Germany,

Where exports > imports ...

The results is definitely good for the country. It will increase its trade surplus. This allow the country to amassed a huge number of foreign reserves which they can use to invest abroad ...

While countries that import > exports, will experienced trade loss/deficit (just think it like the reverse)