Chapter 17, Problem 3Q

Summary Introduction

To explain: The effect on the currency value and foreign investment, if the import is more than the export.

Introduction:

Import:

When a country purchases goods and services from the other country are called import.

The Import was made by the country at that time when the country had a shortage of the goods and services domestically.

Export:

When a country sells goods and services to the other country, it is called export. Export of goods and services makes the foreign surplus of the country.