You have two words in your question that are very vague: substantial and large (quantity). The two "facts" are not really facts but extremely broad statements.
Are "substantial" and "large" 20%, 30%, 40%, 50% of the total goods and services??
Most countries, including the United States, import substantial amounts of goods and services from other countries. Yet there's also saying that a nation can enjoy a high standard of living only if it can produce a large quantity of goods and services itself. How can you reconcile these two facts?
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5 answers
That's what I am confused too.
The only answer is that a country needs to have some kind of balance between imported and local goods and services.
Trade is a two-way street. A contry cannot import anything unless it has something to export. To import a "substantial" amount of goods, a country must produce a "large quantity" of goods to be traded.
Most countries, including the United States, import substantial amounts of goods and services from other countries. Yet there's also saying that a nation can enjoy a high standard of living only if it can produce a large quantity of goods and services itself. How can you reconcile these two facts?
1 answer