Export Economies

Import Economy: An import economy is one that relies heavily on buying goods and services from other countries. It's like if the bakery bought all its flour from another town instead of sourcing it locally.

Trade Deficit: A trade deficit occurs when a country imports more goods than it exports. This would be like if our bakery was spending more money buying flour from another town than it was making by selling bread.

Balance of Trade: Balance of trade refers to the difference between a country’s exports and imports. If our bakery sold as much bread as it bought flour, we'd say it has a balanced trade.