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the impacts of you know all the imports and exports and it now

important to GDP as well you know the amount of expenses

effect in terms of global trade and global trade is so

that they have whether in they're in a trade surplus or a

country produces in a way so yeah dollar down when currency

central banks when they affect interest rates you've got to

devalues exporters benefit from cheaper from cheaper goods and

hope you benefit from this lesson and I'll see you in the

understand not only the effect within the economy but the

they're more expensive for foreign nations. Anyways guys I

higher costs can have a substantial impact on the

doing. They love to keep lower rates. Um especially compared

I hope this is something really easy to understand because

you've got you've got to appreciate you know when

trade deficit that's going to highly impact any GDP that the

then when the dollar is up export is enhanced because

that's when you get higher inflation and the currency

An example is Japan that's something that they keep on

to the world so they can have disadvantage over them. Now

does that mean is that America's currencies increased

isn't as devalued as India's currency of course and so what

remember this from a few slides ago we had that we looked at

devalues. So that's the main point. Um and then obviously

interest rates. So it's when you lower interest rates,

rates as compared to $15 from America because the issue is

exporters from India. What this leads to is that countries can

deliberately make their currency weaker through lower

that makes export prices cheaper for customers globally.

down enough. So if somebody from Australia wanted to pay

in value hence why they can't drive prices as far down as

does that mean for the country itself? You got a greater

competitiveness of exports in the international trade

market. So a stronger domestic currency can have an adverse

number of people that are being employed. It stimulates

has a stronger currency, it can be harder for it to be

that America can't devalue its currency or America's currency

example $5 for for a product from India due to the exchange

for a product, they they would have to pay let's just say for

So that's exactly what an economy wants. And here's just

an explanation to how some countries compete in the

also impact exports by having a direct impact on input costs

like the Bloomberg terminal for example but yeah when it comes

competitive in the global market as it can't drive prices

environment. So what does this mean? So firstly, if a country

from a country's factories and industrial facilities. So what

consumer spending and it contributes to economic growth.

producing

are more exports, it means that there is a high level of output

positive trade is going on in the country which allows

investment on business capital goods. Plus government spending

effect on exports and the trade imbalance. Higher inflation can

effect on your GDP. And just a you know you won't ever really

deficit or trade surplus. So depending on how much you

imports than a trade deficit on the other hand is more imports

So what are the impacts of a trade surplus? So when there

such as materials and labour as list as explained before these

need to work this out because it's all done on the data that

something that manufacturers always have to consider. Um so

than exports so the country is consuming more than it's

economy to grow and prosper so that means more exports than

on goods and services. That's one part. Then you've got the

export versus how much you import that will have a massive

And of course we know that's very important you know

on public goods and services and then either your trade

to a trade surplus that mean it's a positive thing so more

you see on trade and economics and Bloomberg and especially

direct impact on input costs such as materials and labor.

what it actually means. So GDP consists of consumers spending

cheaper. So remember how we were talking about when you

exports. So they're essentially purchasing more than they are

devalue your currency you become more competitive because

trade deficit means is that there's more imports than

exactly what some countries deliberately do to make their

yeah. Now just in reference back to GDP and what actually

Uh so high inflation can also impact exports by having a

exports and makes imports more expensive. Conversely a strong

look at since its activity can influence its GDP, its exchange

your prices are a lot cheaper than everyone else. That's

domestic currency hampers exports and makes imports

exports cheaper for the international economy in a way.

producing. Also a weaker domestic currency stimulates

level imports and a growing trade deficit can have a

imports and exports of a country are very important to

rate and its level of inflation and interest rates. A rising

negative effect on a country's exchange rate. So what that

the the breakdown of all the economies and GDP and

that's what we're going to be looking at right now. So the

everything like that. What happens when the currency

devalues how that impacts imports and exports. Uh so

going to be looking a bit more into implications of imports

and exports. So we previously mentioned that you know during

Yes guys, welcome to the next video. So in this one we're

next one.