Final answer:
When a country has an economic boom and increases imports from another country, the second country will likely see economic growth due to boosted export activity and potentially receive more financial investment.
Step-by-step explanation:
If a country experiences an economic boom and can afford to increase its imports from a second country, it is likely that the second country will see a boost in its own economy. This is because an increase in imports from the first country indicates higher demand for goods. Higher demand leads to increased sales for exporters in the second country, which can stimulate their production and economic activity. Moreover, the inflow of financial capital to finance these imports can have positive effects on the second country’s trade balance and investment levels.
The trade deficit of the country experiencing the economic boom may increase as it buys more from abroad. However, this may be accompanied by an inflow of financial capital from the second country, as investments may flow into the first country to finance these increased imports. Conversely, if the second country has a well-balanced economy, the increased demand for its exports may lead to a higher trade surplus.