how does import and export affect dollar reserves?

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how does import and export affect dollar reserves?

2007-03-21 02:43:44 · 2 answers · asked by grace_guanzon14 1 in Business & Finance ➔ Other - Business & Finance

2 answers

Well, very simply. If people are buying loads of foreign stuff, it means dollars are leaving the country (to pay the manufacturer/producer etc.) Eventually there will be low reserves. Whereas if people buy home made products the money stays in the country which is good for the country.

2007-03-21 02:47:57 · answer #1 · answered by Ya-sai 7 · 0⤊ 0⤋

the reason you have questions like this is to think and learn. If I answer it for you you learn nothing cuz you didn't think.

2007-03-21 02:46:05 · answer #2 · answered by Jo Blo 6 · 0⤊ 1⤋