Question

how foreign trade and policies can affect our real GDP? I would like to see how tariffs and currency falls into this

Answer 1

Answer - The foreign trade and policies adversely affect our GDP.

Talking about the foreign trade , the imposing of more restrictions upon trade means lesser imports. The increased tariffs and quotas reduce the imports and thus increase the value of GDP for the economy by reducing the outflow. The reverse of this is also true.

The foreign policies , such as devaluation of currency , results in our currency becoming cheaper. As our result , out goods will be more attractive to outsiders . Hence decrease in value of our currency will lead to greater exports and thus will increase value of GDP . The rise in value of currency will lead to fall in exports and reduce GDP.