You guys seems like living in 17th century when Mercantilism was a thing.
Export is not everything. A lot of economic activity might come without it.
“You guys seems like living in 17th century when Mercantilism was a thing.
Export is not everything. A lot of economic activity might come without it.”
Russia (and Saudi Arabia, too) needs foreign currency to buy imported goods, since it doesn’t produce enough goods domestically to sustain the current standard of living of its population. The only way to acquire this foreign currency (and, thus, imported goods) is to export oil, military hardware, and some precious metals. Russia produces little else of value in international markets.
A cursory reading of my previous comments on FR reveals that I am anything but a mercantilist. In fact, I have often been subject to name-calling on FR because of my advocacy of comparative advantage and the gains from international trade. (However, I am not unaware of national security concerns and the desirability of the rule of law when it comes to intellectual property theft and industrial espionage.)