Technically, there’s more than one problem with export economies. But they all feed into each other, resulting in a much bigger and singular problem. To start, export economies rely on there being a party that is willing to import the exporter’s goods and services. Usually, the exporter can offer such things at equal quality (or better) than the importer can produce on its own, and at a better price too. The general argument for the benefits of international trade follow this logic, calling it a specialization in competitive advantage. However, this model assumes that the goal is to maximize the ability to consume, regardless of others consequences.
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