Drawbacks of Decreasing Export Revenue
Question
Explain the disadvantages of a decrease in a country’s export revenue.
Category:
Economic Growth & Development
Frequently asked question
Preview Answer
I. 🍃Introduction
- Definition of current account deficit and surplus
- Importance of export revenue in the current account
II. Impact on current account deficit/surplus
- Explanation of how exporting can increase current account deficit or reduce current account surplus
- Examples of countries experiencing this impact
III. Impact on unemployment
- Explanation of how exporting firms reducing output can lead to lower demand for workers
- Examples of countries experiencing this impact
IV. Impact on economic growth
- Explanation of how exporting firms reducing output can lead to lower economic growth
- Explanation of how lower exports/output can lead to lower tax revenue
- Examples of countries experiencing this impact
V. 👉Conclusion
- Summary of the impacts of exporting on current account, unemployment, and economic growth
- Discussion of potential solutions to mitigate negative impacts.
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