Answer to Question #182646 in Macroeconomics for Bianca

Question

What are the possible impact and effect the current inflow of imports could have on job creation in South Africa?

Answer 1

If imports in the form of capital come in, then new jobs are created. So new places will be created by industries that import goods and services. But the country does this in the case when there are no resources for the production of certain goods. Otherwise, imports will undermine the domestic industry