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other countries will enforce protectionist policies to protect domestic firms and control imports from surplus countries
also as a surplus increases AD the multiplier effect can increase AD futhur more. if an economy cannot increase output to match this new demand inflationary pressure occurs as prices are increased
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What is balance of trade?
Balance of trade is the relationship between a country's exports and imports. There is a trade surplus when a country's exports exceed its imports, and there is a trade deficit when a country's imports exceed its exports.
What is trade surplus?
A positive balance of trade, exports exceed imports
Negative balance of trade?
A positive balance is known as a trade surplus if it consists of exporting more than is imported; a negative balance is referred to as a trade deficit.
When a country has a favorable balances of trade?
Balance of trade, or net exports as it is sometimes called, is the difference between the monetary value of exports and imports of an economy over a certain period of time. In other words, it denotes the relationship between a country's imports and exports. This may be positive or negative.A positive trade balance is known as a trade surplus and this happens when exports are more than imports. On the other hand, a negative trade balance is called as a trade deficit or a trade gap and results when the imports are more than . The balance of trade is sometimes divided into a goods and a services balance.A country attains favourable balance of trade, when its value of exports produced by that country and purchased by a foreign country is more than its imports. This is because it results in a net inflow of monetary payments into the country from the foreign sector. It is called favourable becasue it is beneficial to a country.M.J. SUBRAMANYAM, MUMBAI
When a country ships out more goods than it brings in?
A good economy. So long as it can export the goods. Otherwise it is wasteful.
What is balance of trade?
Balance of trade is the relationship between a country's exports and imports. There is a trade surplus when a country's exports exceed its imports, and there is a trade deficit when a country's imports exceed its exports.
A trade surplus is generally known as a?
positive balance of trade.
What is trade surplus?
A positive balance of trade, exports exceed imports
Negative balance of trade?
A positive balance is known as a trade surplus if it consists of exporting more than is imported; a negative balance is referred to as a trade deficit.
Does Germany have a trade deficit?
No, Germany has a balance of payments surplus.
When a country has a favorable balances of trade?
Balance of trade, or net exports as it is sometimes called, is the difference between the monetary value of exports and imports of an economy over a certain period of time. In other words, it denotes the relationship between a country's imports and exports. This may be positive or negative.A positive trade balance is known as a trade surplus and this happens when exports are more than imports. On the other hand, a negative trade balance is called as a trade deficit or a trade gap and results when the imports are more than . The balance of trade is sometimes divided into a goods and a services balance.A country attains favourable balance of trade, when its value of exports produced by that country and purchased by a foreign country is more than its imports. This is because it results in a net inflow of monetary payments into the country from the foreign sector. It is called favourable becasue it is beneficial to a country.M.J. SUBRAMANYAM, MUMBAI
When a country ships out more goods than it brings in?
A good economy. So long as it can export the goods. Otherwise it is wasteful.
If a country has a trade surplus?
Exports > imports
What the meaning of a surplus in the merchandise trade balance?
If a given nation or other economic unit exports more than it imports, it will accumulate money, which will constitute a trade surplus.
Which country in the world has the largest trade surplus?
China
What is a trade surplus?
country export more than they import
What terms means the amount of goods sold abroad compared to what is bought abroad?
Trade balance refers to the difference between a country's exports and imports of goods. When a country exports more goods than it imports, it is said to have a trade surplus, and vice versa for a trade deficit.
