Question

How overpopulation cause imbalance in trade ?

Answer 1

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Trade liberalization generates two effects: the income effect that increases population growth and the gender wage effect that, in the short run, increases, but, in the long run, decreases population growth. With higher income, families invest more in capital if the status of the capital is significant.

Answer 2

Answer:

Trade liberalization generates two effects: the income effect that increases population growth and the gender wage effect that, in the short run, increases, but, in the long run, decreases population growth. With higher income, families invest more in capital if the status of the capital is significant.

Explanation:

A large population is a significant consumer market, an abundant labor force and therefore low-cost production, which leads to an increase in trade flows. The impact of the population on bilateral trade flow is positive for exporting countries, while negative for the importing countries.

There are some benefits of overpopulation, more people means more labor force, it can product more things, and more people will buy the products, However, the growth of population should be similar to the food supply, so overpopulation will cause lack of food, and as the rate of growth of population exceeds the rate of ...

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