example of import and export leakage

Expert Solution

Import leakage:

It means when tourists carry some standards of equipment, food, and other products which is not available in the host. It happens mostly in less developed countries. since local products are not up to the tourist's standards or the country simply doesn't have a supplying industry. Luxury car imported only for foreign tourists those having no local demand is another example of import leakage.

Export leakage:

Often these also happens in poor developing countries where MNCs and large international businesses are possess the necessary capital to invest in the construction of tourism infrastructure and facilities. This arise an export leakage when these overseas investors take their profits back to their country of origin. They normally uses host countries resources for production and sent back the finished goods to their country of origin. For examples A plant established in african county to produce some American product which export product from Africa to America by the American MNC, and not for sale in Africa.

jeff jeffy answered 2 years ago

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