if-a-country-imports-more-than-it-exports-what-are-the-likely-consequences-for-i

Question

If a country imports more than it exports, what are the likely consequences for its foreign financing needs?

Accepted Answer

The country will need to increase foreign financing or sell assets to cover the trade deficit.

Answer

The country will decrease its foreign investments.

Answer

The country will have a surplus and will not need foreign financing.

Answer

The country will have no impact on its foreign financing needs.