Question

why is important for a country to balance its imports and exports​

Answer 1

Answer:

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Exports and imports are important for the development and growth of national economies because not all countries have the resources and skills required to produce certain goods and services. ... If a country imports more than it exports, it has a trade deficit.

Answer 2

Answer:

Why It's Important

Exporting and importing helps grow national economies and expands the global market. Every country is endowed with certain advantages in resources and skills. For example, some countries are rich in natural resources, such as fossil fuels, timber, fertile soil or precious metals and minerals, while other countries have shortages of many of these resources. Additionally, some countries have highly developed infrastructures, educational systems and capital markets that permit them to engage in complex manufacturing and technological innovations, while many countries do not.

Imports are important for businesses and individual consumers. Countries like Ellen's often need to import goods that are either not readily available domestically or are available cheaper overseas. Individual consumers also benefit from the locally produced products with imported components as well as other products that are imported into the country. Oftentimes, imported products provide a better price or more choices to consumers, which helps increase their standard of living.

Countries want to be net exporters rather than net importers. Importing is not necessarily a bad thing because it gives us access to important resources and products not otherwise available or at a cheaper cost. However, just like eating too much candy, it can have bad consequences. If you import more than you export, more money is leaving the country than is coming in through export sales.

On the other hand, the more a country exports, the more domestic economic activity is occurring. More exports means more production, jobs and revenue. If a country is a net exporter, its gross domestic product increases, which is the total value of the finished goods and services it produces in a given period of time. In other words, net exports increase the wealth of a country.

Explanation: