The effect of changes in imports or exports of one country on the national income of another country is called the international trade multiplier.

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The international trade multiplier refers to the effect that changes in the level of exports or imports of one country have on the national income of another country. It is a concept in economics that illustrates how an increase or decrease in the trade activity of one nation can lead to proportional increases or decreases in the income levels of its trading partners.

The Effect of Changes in Imports or Exports of One