It’s common to regard exports as good and imports as bad. When one country runs a large trade deficit with another, such as the US does with China, this is seen as an economic problem. In the UK, people are urged to ‘Buy British’ and the government promotes international trade under the banner ‘Exporting is GREAT’. However, the benefits of trade actually come mainly from imports.
This is not always an easy concept to grasp. If exports help to support local businesses and create jobs, it seems logical that imports must do the opposite. It’s also understandable that many people take it for granted that running a trade deficit is a ‘bad thing’.
This frequently comes up in debates about Brexit. The UK’s growing deficit in trade in goods with the EU was often presented as a ‘cost’ of EU membership. Correspondingly, the possibility that new trade…
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