In Foreign Repercussion Effect?
Foreign Repercussion or Backwash Effect: a Country's Exports or Imports Affect the National Income of the Other Country Which, in Turn, Affects the Foreign...
What is the meaning of foreign trade multiplier?
The foreign trade multiplier, also known as the export multiplier, operates like the investment multiplier of Keynes. It may be defined as the amount by which the national income of a country will be raised by a unit increase in domestic investment on exports.
How is the foreign trade multiplier derived?
The expression ΔY/ΔX represents the foreign trade multiplier whose value depends on the slope of saving-import function curve S+ M which is equal to the reciprocal of the sum of marginal propensity to save and marginal propensity to import (1/s + m).
Elena Rostova holds a Master's degree in Public Health Journalism. She covers groundbreaking medical research, holistic wellness trends, mental health awareness, and nutritional science.
