nX07 Posted September 12, 2005 Share Posted September 12, 2005 I am wondering what would effect a countries economy more.. lesser imports coming to the country, or lesser exports going out of the country? Thanks for any insight. Link to comment Share on other sites More sharing options...
Fred Derf Veteran Posted September 12, 2005 Veteran Share Posted September 12, 2005 (edited) Assuming that "T.DOT" represents Toronto then lesser exports affects our economy greater because we are an export nation. Many jobs are tied to the export economy. [Thread Moved from GD to RWI] Edited September 12, 2005 by fred666 Link to comment Share on other sites More sharing options...
nX07 Posted September 12, 2005 Author Share Posted September 12, 2005 Oh I see, would that apply to the United States as well? Link to comment Share on other sites More sharing options...
Fred Derf Veteran Posted September 12, 2005 Veteran Share Posted September 12, 2005 Oh I see, would that apply to the United States as well? 586511767[/snapback] Probably not, the US is an import-based economy. They need raw materials for their own use. Link to comment Share on other sites More sharing options...
nX07 Posted September 12, 2005 Author Share Posted September 12, 2005 Oh okay, Thanks alot Fred for helping me out here :) Link to comment Share on other sites More sharing options...
dreamz Veteran Posted September 12, 2005 Veteran Share Posted September 12, 2005 it really depends. borrow a book (or read some articles) about international trade economics and you'll find lots of literature on it. in particular, i want to point you to some key ideas: -balance of trade. this is a component of gdp and contributes to the calculation of national prosperity. in general, exports bring in money (and increase gdp), while imports send out money (and decrease gdp). in the basic calculation, net imports is exports less imports. -elasticities (of imports and exports). this can describe relationships between the amount of imports/exports (and their effects) and changes in the exchange rate. you can also read up on market structures, trade policies, etc. Link to comment Share on other sites More sharing options...
+E.Worm Jimmy Subscriber¹ Posted September 12, 2005 Subscriber¹ Share Posted September 12, 2005 Assuming that "T.DOT" represents Toronto then lesser imports affects our economy greater because we are an export nation. Many jobs are tied to the export economy.[Thread Moved from GD to RWI] 586511763[/snapback] so you are saying the bacause we are an export economy - less imports have more effect? should it not be less exports, since we need them? or am i mixing something up? Link to comment Share on other sites More sharing options...
Fred Derf Veteran Posted September 12, 2005 Veteran Share Posted September 12, 2005 so you are saying the bacause we are an export economy - less imports have more effect? should it not be less exports, since we need them? 586513843[/snapback] No, I, er. What. :blush: Oh, I guess I better edit that. It wasn't what I meant. Link to comment Share on other sites More sharing options...
Osiris Posted September 13, 2005 Share Posted September 13, 2005 The answer is lessor exports. In a basic open economy model exports generate income for your economy, imports are a cost or leakage from it. Whilst less imports might have rammfications for your consumers due to a lessor choice or what not and there are a host of reasons why a countries import levels shrink, lessor exports still mean lessor income. Link to comment Share on other sites More sharing options...
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