We are now going to know about a particular trader who specializes in making shoes and sells them from his market stall. (During the course of the present project, we shall hear a lot more about this Ruralian businessman, named Mr. Trader.)
Exports and the Balance of Payments:
As we shall see, there are several good reasons why it is important for countries and for individual companies to export and to keep expanding their exports.
From the national point of view, the most important reason is that unless a country exports it will not have the foreign currency it must have to import the things it needs but cannot supply itself.
Without foreign currency, a developing country cannot import the materials, equipment and technology it needs for development even the basic necessities of life. It is clear why this is so if you think about the balance of payments.