Financial assets, such as land, stocks, and bonds, or through an extension of credit from other

Countries.

The reason that imports are ultimately paid for by exports is that foreigners want something in

Exchange for the goods that are shipped to other countries. For the most part, they want goods

made in the United States, Germany, Japan. From this truism comes a remarkable corollary:

Any restriction of imports ultimately reduces exports.

This is a shocking revelation to many people who want to restrict foreign competition to protect

Domestic jobs. Although it is possible to protect certain jobs in an industrially developed nation by

restricting foreign competition, say, in automobiles or steel, it is virtually impossible to make everyone

better off by imposing import restrictions. Why? Because ultimately such restrictions lead to

A reduction in employment in the export industries of this nation.

Vocabulary Notes to Text 8.7.1.4

Truism — общеизвестная, избитая истина

Corollary — вывод, заключение

Revelation — откровение

A) Imports of goods and services represent the.1578value of all goods and other market services received

From the rest of the world.

They include the value of merchandise, freight, insurance, transport, travel, royalties, license

Fees, and other services, such as communication, construction, financial, information, business,