62.7k views
0 votes
How can a trade deficit actually increase the productivity of an economy?​

User Crypto
by
6.4k points

2 Answers

2 votes

Answer:

by importing investment goods used for capital deepening

Step-by-step explanation:

its right

User MrEvgenX
by
6.6k points
0 votes

Answer:

The response to the question: How can a trade deficit actually increase the productivity of an economy, would be, because it ellicits importation of goods that will enhance the economy as it also encourages investment from those whose capital increases due to the selling of the imported goods.

Step-by-step explanation:

A trade deficit is defined as the economic measure that shows when a country´s exports are being outweighed by the imports carried out. In economics, this kind of deficit is taken as a negative balance of trade, as in essence, the money from the country will flow out towards other markets in order to acquire the necessary goods that the country is not producing. However, importation of these goods can have a positive effect, not only because it makes availability of the lacking product possible, but, because the product is needed, and cannot be acquired internally, people will buy them at a higher price and thus traders for these goods will deepen their capital possibilities.

User Peter Cordes
by
6.1k points