Hello,
I'm an economics student and there's one thing I'm not grasping, really. I had a debate, see, and I can't say it's entirely over.
What's the deal, really? So, whenever exports are smaller than imports, we say a country is indebted to another one. Is this true?
From a single company's point of view, I'd say this is entirely false. I mean, maybe it would be cheaper to buy something from a foreign country's company + transport costs than to buy it in your home country. However, this appears not to be the point.
From what I understand, it seems to be rather a matter of the currency we employ... But where's the problem, really? Why would it hurt a country so much?
Greetings,
Pete
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