ECO603 - International Economics

The Case: Politics of the world has been changed with the passage of time. Today’s economic as well as political environment is related to social media, internet sale and purchase, stock exchange and exchange rate ups and downs. All these are related to each other. Pakistan is an agrarian country and its major crops are cotton, wheat, rice and sugarcane. Imports are oil and mineral fuels, tobacco optical and medical equipment, metal ores and motor vehicles while exports are food items, live animal, leather, cotton and clothes. Economy of Pakistan and balance of payment mainly depend on agricultural sector, performance of public sector, political environment and weather condition. Requirement: After reading the above facts and figure, explain logically that how does political environment affect the exports of Pakistan?