What happens when the value of a country's exports is higher than the value of its imports a a country makes higher profit b a country has a market economy see a country is recognized as a manufacturing Nation be a country becomes less dependent on other nations

Answer 1

When the value of a country's exports is higher than the value of its imports, several outcomes can occur:

a) A country makes higher profit: This is true as the value of exports is greater than the value of imports, meaning that the country receives more money from selling its goods and services abroad than it spends on purchasing foreign goods and services. This surplus in the balance of trade can contribute to economic growth, increase foreign reserves, and improve the overall financial situation of the country.

b) A country has a market economy: This statement is somewhat misleading. The trade balance (exports minus imports) generally does not determine whether a country has a market economy or not. A market economy refers to an economic system where the production and allocation of goods and services are primarily determined by supply and demand in competitive markets. It is not directly related to the trade balance.

c) A country is recognized as a manufacturing nation: If a country's exports are mainly composed of manufactured goods, a significant trade surplus can contribute to establishing the country's reputation as a manufacturing nation. This recognition can enhance the country's image, attract foreign investment, and potentially lead to further growth and development in the manufacturing sector.

d) A country becomes less dependent on other nations: When a country's export value exceeds imports, the country becomes less reliant on other countries for goods and services. This reduced dependency on imports can enhance economic independence, decrease vulnerability to foreign economic fluctuations, and strengthen the country's economic self-sufficiency. However, it is important to note that no country can be entirely self-sufficient and will likely still rely on imports for certain goods or resources.