joanne
Barbarian
- Joined
- Jun 1, 2009
- Messages
- 489
No you wouldn't want to forfeit all the commerce you get from foreign trade routes just to be number one on everything - the import/export on demographics screen doesn't matter that much as long as you're outproducing and outteching everyone. Trade deficits, like many other often misunderstood economic concepts, is not inherently good nor bad. By my own understanding, buying stuff from other countries(imports) is a great way to introduce money into an economy and thus help expand it, without decreasing the value of the importing nation's currency due to increased supply(inflation) since the new money is flowing out as the imported goods come in. In the real world many countries have prospered with huge capital account deficits, like the United States did in the late nineties(disclaimer: don't take my word for it, I'm not an economics major)