International trade exists for several reasons. First, differences in demand underlie trade. Certain products we want are not produced in the country. Instead, they are only available in other countries. So, we have to import to get
What are the Benefits of International Trade?
Increased access to cheaper and more varied goods and services is key benefits of international trade. Thus, it allows us to increase well-being. We can satisfy our needs and wants by buying more varied and cheaper products not produced
How Exchange Rates Affect Aggregate Demand and the Economy
Exchange rates affect aggregate demand through their effects on exports and imports. Specifically, it affects the relative prices of imported or exported goods and, ultimately, their competitiveness and demand. For example,
Exports: Importance, Types, Influencing Factors
What's it: Export means sending domestic goods and services to foreign markets for sale. As compensation, we get foreign currency as payment, say US dollars. Thus, exports do not only have implications for the demand for domestic output. But, it