Answer to Question #236246 in Microeconomics for Zondiwe

Question

a) In light of the above, you are required to review literature (both theoretical and empirical) on the impact ofinternational trade on economic growth in South Africa.

Answer 1

The effects of international trade  show that inflation rate, exports and exchange rate ahave a positive relationship with GDP while import has a negative influence on GDP. The South African economy growth rate slowed down recently due to reduced international trade .