One economic advantage of a large share of exports in GDP is that countries
A)can reduce their budget deficits.
B)can purchase the imports they need.
C)can maintain lower rates of unemployment.
D)develop more labor-intensive industry.

Question

Quizplus · Accepted Answer

A large share of exports in GDP means that the country is earning a significant amount of foreign currency, which can be used to purchase the imports they need without putting strain on their domestic currency reserves. This can help a country maintain a stable balance of payments and avoid trade imbalances. Additionally, exporting countries may have access to larger markets, leading to increased economies of scale and potentially improved efficiency and productivity, which can ultimately lead to lower prices and improved standards of living for citizens.

One Economic Advantage of a Large Share of Exports in GDP