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The multilateral trading system aims to promote the healthy economic growth of nations by fostering a system of balanced trade between exports and imports. A

The multilateral trading system aims to promote the healthy economic growth of nations by fostering a system of balanced trade between exports and imports. A country with a balanced trade is able to sell the goods and services that it produces, thereby being able to import goods and services that it needs.

a) However, when there is a continuing imbalance in trade, that is, more imports than exports, the economy of a country is negatively affected. Justify how does this happen?

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