5 ms·

> Apart from you having less money when buying foreign things Isn't this bad given that the UK currently operates with a trade deficit?

• AnimalMuppet 10y ago
  No, because peoples' behavior changes. They buy fewer imports (because more expensive) and sell more exports (because less expensive to foreign buyers), so the balance of trade improves.
  • cjrp 10y ago
    That assumes everything can be made in the UK without any dependence on foreign countries anywhere in the supply chain.
    • AnimalMuppet 10y ago
      No, it assumes that more can be made in the UK with less dependence on foreign countries in the supply chain.