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Drawbacks of Decreasing Export Revenue

Question

Explain the disadvantages of a decrease in a country’s export revenue.

Category:

Economic Growth & Development

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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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