If a country consistently has more imports than exports how do they avoid running out of money?
In: 0
How much you import/export hasn’t got to do with making or losing money. A country can have 100% imports and make money. Because they resell those goods and services at a higher price. A really simple example is I import a phone from China and resell it for 100 profit. Now imagine lots of companies buying materials, parts, services etc and doing the same thing. Import /export is just a way of seeing a countries competitive advantage in a way. Hence manafacturing heavy countries like China and India may have higher exports than imports.
Latest Answers