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Exporting vs. Importing

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If a nation exported much of its output but imported little, would it be better or worse off? How about the reverse of exporting little but importing lot?

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If a nation exported more than it imported, it would create a trade surplus. This would be advantageous to the country. If the country imported more than they exported (as many nations currently do), it would create a trade deficit. Basically, when a country imports more than the ...

Solution Summary

This solution explains if it would be better or worse for a nation to export more than it imports. We also discuss the consequences/benefits if the opposite were true.