why are imports, which bring goods into a country, considered a leakage factor?\no imports do not generate…

why are imports, which bring goods into a country, considered a leakage factor?\no imports do not generate domestic income.\no domestic industry loses ground as imports increase.\no imports are taxed heavily, which is a secondary leakage factor.\no the money paid to producers of imports leaves the country.

why are imports, which bring goods into a country, considered a leakage factor?\no imports do not generate domestic income.\no domestic industry loses ground as imports increase.\no imports are taxed heavily, which is a secondary leakage factor.\no the money paid to producers of imports leaves the country.

Answer

Brief Explanations:

In the circular - flow of income model, leakage factors remove money from the domestic economy. When a country imports goods, the money paid to the foreign producers of those imports leaves the domestic economy. This is why imports are considered a leakage factor.

Answer:

The money paid to producers of imports leaves the country.