Answer to Question #230741 in Macroeconomics for Grace

Question

International trade calculations about Volkswagen importing and exporting in SA.

Answer 1

International trade allows the expansion of markets and creates competitive market structures. Volkswagen history in South Africa has boosted the manufacture of 3.4 million vehicles. The factory produces up to 600 cars a day. It has gained awards in numerous exports orders and is currently the top-selling passenger model. Its operation is on a value_based management system thus it benefits from both exports and imports. Imports help in the manufacture of end products and indicate profit generated from each unit of sale. Exports generate profits and indicate the economic output of the business.