Imports impact the economy in several aspects. For example, at the micro level, imports affect competition by increasing supply in the domestic
International Trade
What Are the Factors Affecting Imports?
Availability is a factor affecting imports. We import goods from abroad because they are unavailable in the domestic market. For example, the domestic
Reasons Why International Trade Exists
International trade exists for several reasons. First, differences in demand underlie trade. Certain products we want are not produced in the
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
Trade Sanction: Meaning, Reasons, Types, Pros, Cons
What's it: Trade sanction is formal penalties for stopping or reducing the purchase or sale of goods to a country. The sanctioner may be a
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Terms of Trade: Meaning, How to Calculate, Impacts
What's it: Terms of trade (TOT) is the ratio between export prices and import prices. Because international trade involves various goods and services,
Trade Balance: Formula, Calculation, Impacts, and Affecting Factors
What's it: Trade balance is the difference between the country's export value and its import over a certain period. When exports' value exceeds
Trade Surplus: How to Calculate, Affecting Factors, Pros, Cons
What's it: A trade surplus is when the value of a country's exports exceeds its imports. Or in other words, the country reports a positive trade
Trade Restriction: Reasons, Types, and Impacts
What's is: Trade restriction refers to the various barriers that make the flow of goods and services between countries immobile. If the barriers
International Trade: Why It Matters, Advantages, Disadvantages
What's it: International trade refers to trade of goods and services across countries. It consists of exports and imports. Export means you sell
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Trade Barriers: Types, and Arguments
A trade barrier is any obstacle that limits the movement of trade flows between countries. Generally, the purpose of this measure is to protect the
Trade Deficit: Formula, Causes, Impacts
What's is: A trade deficit occurs when the value of a country's exports is less than its imports. To finance the deficit, the country has to
Absolute Advantage: Examples, Assumptions, Criticism
What's it: Absolute advantage refers to the ability to produce goods or services more efficiently than others. As a result, those with this
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
Import: Types, Influencing Factors, Impacts
What's it: Import means purchasing goods and services from abroad. For example, Japanese car manufacturers ship and sell their products to the