Thanks very much for your simple explanation at least everyone can understand.
But I have one last question for me to understand fully the economic game.
Suppose the country has several means of production in every sector like agriculture,Industrial production,business but no export.
Will the economy be raised?if yes where is the excess money of the country comes from for the economy to raise?
Well,
We're almost 60 millions Tanzanians. And lets follow for a moment our statisticians data as 70-80% of us makes life by agricultural practices.
As you have said, assuming no export, how will an economy grow?
Imagine all those 80% people have flooded the agricultural harvests in a year. Internal markets will be weighed down, since 80% of people have full stocks. Will internal bussinessmen rescue the internal markets for that whole stocks? Lets see.
The burden will be on the farmers. There will be food and crop producst everywhere. Farmers will need to lower prices so that they can sell stocks faster and get money, as there will be competition. Internal industries will benefit from low price agricultural raw materials. At this point the gain is very minimum as no body is hungry.
... assuming no export.
The government or/and individuals (businessmen) will seek investors. And of course most of them will be coming from abroad.
Investors will be attracted by huge stocks of agricultural raw materials. And of course they will come with $$$$$ you know.
Coming with $$$$ they will need to exchange money in banks, western union, and the co. Here the government gets some interests. And of course I can see some raise here even if it's infinitesimal but in the long run will be huge.
With the coming of investors I now see the relief of our farmers here.
... assuming no export.
Investors will start investing in industries to process those raw materials and make products like mtindi, flour, cooking oil, bags, etc.
... assuming no export.
The cycle of internally made products will depend with the internal demands. The most demanded product will win the market.
From the scenario above, assuming every sector floods it's production and no exportation, the internal markets will sustain and grow very slowly compared to when there is exports of products and raw materials.
Waiting for investors to come with $ is a good start for a country to grow its internal markets. As you know something should done to attract investors i.e government policies.
Gaining excess money with no exportation is a sacrifice. That means you need investors with their moneys to come invest in your ground. Long way to go.
But the combination of exportation and importation is much more faster for economy to grow than either one.
Regardless of individual benefits from internal business, something will eat on the national economy. Will see very slow growth.