Question

nation can become rich and powerful only by exporting more than it imports.

True or False and why.

Answer 1

International trade is an important part of the success and progress of different countries. It is true that no one is self dependent in producing all types of goods and services demanded by the population. So the concept of export and import is very important in this regard.

If a country can export more than what it imports then it can become rich and powerful. It is also important to import as there are many things which can't be produce within the country and if efforts will be made then it may be costlier. Exports bring revenue in the economy which is useful in the development and growth process of the economy. But both export and import are important because there are some countries which are good in natural resources, fossil fuels whereas there are some who have better infrastructure, education system, better technologies. so if it is cheaper to import rather than to produce domestically then a country want to import. Sometimes imported goods provide better choice or reasonable price to consumers which ultimately improves their standard of living But more exports than imports is good for the economy as it will boost the production process and create more job opportunities and more revenue. Thus net export increases the wealth of a country making it rich. So this statement is true.