Economics Balance Of Trade Questions
Technology plays a crucial role in the balance of trade by influencing a country's export and import levels. Advancements in technology can enhance a country's productivity and efficiency, leading to increased exports and a favorable balance of trade. Improved technology enables the production of high-quality goods at lower costs, making them more competitive in the global market. Additionally, technology facilitates the development of new products and services, expanding a country's export potential. Conversely, if a country lags in technological advancements, it may struggle to compete internationally, resulting in a trade deficit. Therefore, technology is instrumental in shaping a country's balance of trade by influencing its export competitiveness and import reliance.