The policy of "impoverishment of a neighbor"

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The policy of "impoverishment of a neighbor" - is caused by expansive export. In general, we call this situation when the import of a given country (exports of the rest of the world) is decreasing. Exporting one country is the import of its partner. Exports are driven by a boom in one country, but as a result, a neighbor loses its sales in its internal market, leading to recession and unemployment. Such a policy is related to the introduction of retaliatory measures by other states eg

In carrying out the policy of "impoverishment of a neighbor", the transmission of one country's policies to another is more negative than positive. That means there is a negative external macro effect.

Examples of "neighboring impoverishment": Bibliography

wiki

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