“Foreign Trade Balance”

Essay specific features

 

Issue:

Business

 

Written by:

Kermit M

 

Date added:

March 4, 2016

 

Level:

University

 

Grade:

B

 

No of pages / words:

7 / 1946

 

Was viewed:

2128 times

 

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Essay content:

And when policy makers insist on reducing the way that countries economically interact to a single figure - the trade balance - it is dangerous, especially when it unleashes a specter of protectionism. FOREIGN TRADE BALANCE The balance of trade forms part of the current account, which also includes other transactions such as income from the international investment position as well as international aid...
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If the current account is in surplus, the country's net international asset position increases correspondingly. Equally, a deficit decreases the net international asset position. The trade balance is identical to the difference between a country's output and its domestic demand (the difference between what goods a country produces and how many goods it buys from abroad; this does not include money re-spent on foreign stocks, nor does it factor the concept of importing goods to produce for the domestic market)...
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