Please answer the three questions below.
Define a trade deficit and a trade surplus. What are the implications of a long-term trade deficit or trade surplus? What techniques are available to correct balance of payment deficit or surplus?
Please provide proper references and cites properly format. If you are using a book, please provide chapter, paragraph and/or page number(s)
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In trade deficit, the economic measure is a negative balance of trade. It usually happens when the country's imports are more than its exports. It represents an outflow of a nation's domestic currency to foreign lands. When an opposite happens, e.g., a country's exports exceeds its imports, a country is said to have a negative balance of trade or commonly known as trade surplus.
Economists believe that a short term trade deficit is essential for a country to grow, develop and prosper. However, they also consider long term trade deficit ...
The solution discusses about trade deficit and trade surplus. References are included.
Do Trade Deficits and/or Surpluses indicate weakness or strength in the economy?
Many individuals believe that trade deficits are a troubling economic condition which indicates weakness in an economy while trade surpluses are a sign of strength and rising prominence for an economy.
Where do you stand on this subject? Do you agree or disagree and why?View Full Posting Details