Import

  

Categories: Econ, International

To bring product into a nation.

Think: we suck down a gadjillion gallons of dead dinosaur gunk to run our cars. We don't have enough DDG in the U.S. to keep everyone happy and pollute-y. So we import oil from the Middle East to sate our thirst.

Countries that import generally pay for those imports with cash. So think about it. The importing country gains cash from doing other stuff...working hard, creating GDP, profiting from whatevers. That cash then goes to the selling country. So you can imagine that there are a ton of U.S. Dollars floating around the Middle East, courtesy of our unslaked thirst for oil.

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Econ: What is Outflow of Capital?2 Views

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And finance Allah shmoop What is the outflow of capital

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All right well you are a stunningly deep sleeper One

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day you fall asleep on the beach just before the

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tide comes in When you wake up covered in you

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know seaweed and surrounded by a flopping fish You find

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that everything you brought to the beach was washed out

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to the sea Your towel's your beach umbrella You're cooler

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with the mango juice and the cops you know made

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out of coconuts And your wallet Yeah that thing with

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that stack of cash you brought for vacation Well capital

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outflow in a nutshell Well in a coconut shell anyway

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Riel life capital outflow refers to the same concept but

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only on a national level That is assets move out

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of the country They flow out Investors pull their money

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out of one place because they think their cash will

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be better off somewhere else You're an investor in a

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Su Mak farm in the small Mediterranean nation of Slovenia

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The king dies and his dopey son takes over the

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throne So yeah you're sure the new king's policies will

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ruin the country's economy and run everything businesswise into the

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ground So you closed down your Su Mak farm and

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you buy another one in a neighbouring country with a

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more stable future in a way smarter Qing Capital Outflow

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out of Slovenia and into its neighbour That's what's happening

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Well Capital outflow doesn't just involve foreigners moving money from

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one overseas investment to another Citizens of a country might

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move assets out of that nation if they think they'LL

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be safer somewhere else So let's go to China It's

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a country with a restrictive government and not a huge

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respect for the rule of law for its individuals Like

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if you're a rich person in China well you'LL want

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to get as much of your money out is you

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can most likely anyway move it somewhere else somewhere safer

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somewhere less scrutinizing So you take what cash you can

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and you look for investments elsewhere outside of the restrictive

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rules of China So you buy an apartment in Paris

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and maybe a small castle with little golf course in

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Scotland and then you come back around and buy a

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cotton candy factory with corn in Iowa Or maybe you

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start looking at ASU Mac Farm along the Mediterranean Yeah 00:02:09.365 --> [endTime] just not inched Slovenia

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