Answer to Question #301017 in Macroeconomics for sahil

Question

Analyse how an increase in exports could improve a country’s economic performance.

Answer 1

Increased Employment- due to high exports many industries in the country will need an increased labour so as to meet it's demand this leading to increased Employment this improving countries perfomance

Increased foreign exchange- this is due to increased export the country earns foreign revenue this increases export leads to increased inflow of foreign exhange

Increased imports- due to increased export the country earns enough revenue and is able to purchase goods from out the country thus increased imports

Expansion of market- expand markets leaving you less dependent on single one.Greater production can lead to larger economies of scale and better margin.