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What does a country experience when the total value of exports is higher than the total value of imports?
Wiki User
∙ 11y ago
they will fell different
they will
Wiki User
∙ 11y ago
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Explain how exports can be greater than a country's GDP?
gdp includes consumption, investment ,govt spending and net exports.......the last term i,e., net exports is nothing but (exports-imports) .so if imports are far higher than exports then it can make the term gdp less than the term exports .....countries having heavy import based economy will have this anamoly.....especially small countries like singapore luxembourg have this feature....
An unfavorable balance of trade occurs?
an imbalance of trade. More going in one direction that the other.
What does Balance of Trade mean?
The term Balance of Trade (or BOT) is the largest component of a country's current account in its balance of payments (BOP) accounts.It shows the difference between export earnings and import expenditure.It is called 'favorable' when the amount realized from physical (or tangible or visible) exports is more than the amount spent on physical imports, otherwise called 'unfavorable.'It is called also trade balance.
Is Us government shoud institute higher tariffs on imports positive or normative?
normative
What are the 3 types of trade barriers?
1. Imposing indirect taxes for imported goods. This makes imported goods more expensive compared to locally produced goods. People are then encouraged to spend less on imports. -Ad valor em tax - a certain percentage of the good's price -Specific tax - a certain amount of a unit. 2. Imposing quotas. Only a certain volume of imports are allowed into the country. 3. Voluntary export restraints. This is to maintain diplomatic relationships between countries. A country might decide to export less to another country to avoid unnecessary trade restrictions BY the other country. 4. Export subsidies. A government might subsidies the cost of exporting to encourage a higher volume of exports. This increases the export earnings and net exports also increases. 5. Strict technical, administrative & other regulations. Imports are subjected to stringent rules and regulations to discourage them from importing more. Example, high level of red tape.
Explain how exports can be greater than a country's GDP?
gdp includes consumption, investment ,govt spending and net exports.......the last term i,e., net exports is nothing but (exports-imports) .so if imports are far higher than exports then it can make the term gdp less than the term exports .....countries having heavy import based economy will have this anamoly.....especially small countries like singapore luxembourg have this feature....
What are the effects of balance of payments in relation to Zimbabwe?
If your country has higher level of inflation than major trading countries, the exports will be expensive and imports will be cheaper. Country's balance of trade will be affected and ultimate effect will be on the rate of exchange.
An unfavorable balance of trade occurs?
an imbalance of trade. More going in one direction that the other.
What is unilateral liberalization?
The country applying Unilateral Trade Liberalization will abolish protectionist tariffs on imports. Therefor reducing the imported goods prices, providing a relative gain in value of the exports in the trade balance. In theory this relative gain is higher than the revenue from the initial protectionist tariffs for low or medium income countries. However the volume of imports might go up to reach the same amount as the initial imports in value (because prices are lower, we import more). Canceling any effect on the trade balance (as well losing the initial revenues from import tariffs), the benefits will then be that the purchasing power is higher (for the same amount of money a consumer will be able to buy more in the unilateral liberalizing country).
How does a tarriff quota embargo subsidy and dumping affect trade?
A tariff is a tax on imported goods, which may increase the cost for consumers and reduce competition. A quota limits the quantity of a specific good that can be imported, potentially leading to higher prices or scarcity. An embargo is a complete halt on trade with a specific country, which can disrupt supply chains and impact businesses. Subsidies are financial support given by the government to domestic industries, distorting market competition. Dumping is when a country exports goods at a significantly lower price than the domestic market, potentially harming local industries.
What are the types of trade barriers?
1. Imposing indirect taxes for imported goods. This makes imported goods more expensive compared to locally produced goods. People are then encouraged to spend less on imports. -Ad valor em tax - a certain percentage of the good's price -Specific tax - a certain amount of a unit. 2. Imposing quotas. Only a certain volume of imports are allowed into the country. 3. Voluntary export restraints. This is to maintain diplomatic relationships between countries. A country might decide to export less to Another Country to avoid unnecessary trade restrictions BY the other country. 4. Export subsidies. A government might subsidies the cost of exporting to encourage a higher volume of exports. This increases the export earnings and net exports also increases. 5. Strict technical, administrative & other regulations. Imports are subjected to stringent rules and regulations to discourage them from importing more. Example, high level of red tape.
What are 3 types of trade barrier?
1. Imposing indirect taxes for imported goods. This makes imported goods more expensive compared to locally produced goods. People are then encouraged to spend less on imports. -Ad valor em tax - a certain percentage of the good's price -Specific tax - a certain amount of a unit. 2. Imposing quotas. Only a certain volume of imports are allowed into the country. 3. Voluntary export restraints. This is to maintain diplomatic relationships between countries. A country might decide to export less to Another Country to avoid unnecessary trade restrictions BY the other country. 4. Export subsidies. A government might subsidies the cost of exporting to encourage a higher volume of exports. This increases the export earnings and net exports also increases. 5. Strict technical, administrative & other regulations. Imports are subjected to stringent rules and regulations to discourage them from importing more. Example, high level of red tape.
How the higher national income will contribute he growth of the economy?
A higher national income reflects an increase in demand from the country itself and exports to outside countries. This contributes to the growth of the economy by increasing employment and wages to meet these demands.
What does Balance of Trade mean?
The term Balance of Trade (or BOT) is the largest component of a country's current account in its balance of payments (BOP) accounts.It shows the difference between export earnings and import expenditure.It is called 'favorable' when the amount realized from physical (or tangible or visible) exports is more than the amount spent on physical imports, otherwise called 'unfavorable.'It is called also trade balance.
What are the 3 types of trade barriers?
1. Imposing indirect taxes for imported goods. This makes imported goods more expensive compared to locally produced goods. People are then encouraged to spend less on imports. -Ad valor em tax - a certain percentage of the good's price -Specific tax - a certain amount of a unit. 2. Imposing quotas. Only a certain volume of imports are allowed into the country. 3. Voluntary export restraints. This is to maintain diplomatic relationships between countries. A country might decide to export less to another country to avoid unnecessary trade restrictions BY the other country. 4. Export subsidies. A government might subsidies the cost of exporting to encourage a higher volume of exports. This increases the export earnings and net exports also increases. 5. Strict technical, administrative & other regulations. Imports are subjected to stringent rules and regulations to discourage them from importing more. Example, high level of red tape.
Is Us government shoud institute higher tariffs on imports positive or normative?
normative
How are trade deficits important to globalization?
Trade deficits, where imports are higher than exports, can help boost exports of many countries, both developing and developed, and strengthen their economy, especially in the post-depression times. As quoted from Wikipedia, "Globalization describes the process by which regional economies, societies, and cultures have become integrated through a global network of communication, transportation, and trade. The term is sometimes used to refer specifically to economic globalization: the integration of national economies into the international economy through trade, foreign direct investment, capital flows, migration, and the spread of technology". With higher amounts of imports, more countries around the world are able to trade and create a more extensive trade network.
