3 ms·

In any possible scenario, be it quality, quantity, and so on, there has to be some advantage of some kind for the trade to happen in the first place.

• s1artibartfast 2y ago
  of course, It can be cheaper to import foreign goods than making them at home. Thats almost always the case with trade deficits. That is beside the point of what the long term consequences of running a trade deficit are, if they are sustainable, and how currency exchange impacts these factors.
  • MichaelZuo 2y ago
    Why do you think it’s besides the point?
    • chucke 2y ago
      China can produce most things cheaper than anyone. Economically, it's pointless to compete with them. However, if too many think the same, you get bottlenecked and compete for access to the supply, which raises prices. You bevome also politically subservient to China.