Imports, Exports & Exchange Rates

14 minute video, featuring Professor Friedman explaining the principles that govern imports, exports and exchange rates.
An industry that produces exports is good.
Goods and services imported provides opportunities for the country.
Gain of foreign trade is goods being exported.
Favourable balance of trade: sending more goods and getting less in.
Tendency to concentrate on productive side, visible effects of tariffs are good whilst invisible effects are bad.
So long as there is a free exchange rate which is free to determine in the market the price of the dollar in terms of the foreign currency, then there will never be balance of payments problem.
There is no sense in which a local industry is in danger of being undercut by foreign industries and be destroyed.

The views expressed in the article are the author’s and are not necessarily shared by the members of the Foundation.

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