It eventually faces crisis, ruin and takeover. This is the current problem in the United States , which imports more than it exports but has avoided a crisis (until now) by buying on credit in dollars and then reducing its debts to other countries (mostly China, Japan and Saudi Arabia) by devalueing the dollar. Because the US is such a good customer these countries continue to supply goods even though they are paid with paper dollars which are worth less every day. They have now decided to correct the situation by using the paper dollars to buy American real estate and businesses in exchange for their plastic toys and oil. So America is gradually giving itself away.
The balance of trade (or net exports, sometimes symbolized as NX) is the difference between the monetary value of exports and imports of output in an economy over a certain period. It is the relationship between a nation's imports and exports.[1][dead link] 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 or, informally, a trade w. The balance of trade is sometimes divided into a goods and a services balance.
The source of this informations was from wikpedia:
There will be a current account deficit in the balance of payment.
trade deficit
trade surplus
the imports will cost more were as you will get paid less for the exports.
Net exports will be positive and will add to the calculation of GDP.
noun the difference between the values of exports and imports of a country, said to be favorable or unfavorable as exports are greater or less than imports. ----
Terms of Trade refers to the value of the country's exports relative to that of the country's imports. If a country's terms of trade is less than 100% there is more capital leaving the country, buying imports, than there is coming in from exports. It is possible to determine the health of the country's economy from these figures
Basically, the balance of trade is when the difference in value between a country's imports and exports is more or less equal.
the imports will cost more were as you will get paid less for the exports.
Net exports will be positive and will add to the calculation of GDP.
In general, the larger the country's domestic economy, the less dependent it tends to be on exports and imports relative to its GDP.
noun the difference between the values of exports and imports of a country, said to be favorable or unfavorable as exports are greater or less than imports. ----
When a country is exporting, in dollars and cents - less than it is importing, that country is running a trade deficit.
Terms of Trade refers to the value of the country's exports relative to that of the country's imports. If a country's terms of trade is less than 100% there is more capital leaving the country, buying imports, than there is coming in from exports. It is possible to determine the health of the country's economy from these figures
Basically, the balance of trade is when the difference in value between a country's imports and exports is more or less equal.
Basically, the balance of trade is when the difference in value between a country's imports and exports is more or less equal.
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....
If the Euro rises against the Dollar, this will affect the prices of imports and exports. The prices of European exports to the United States will rise and be less affordable for Americans. The prices of American exports to Europe will fall and become more affordable to Europeans.
If the Euro rises against the Dollar, this will affect the prices of imports and exports. The prices of European exports to the United States will rise and be less affordable for Americans. The prices of American exports to Europe will fall and become more affordable to Europeans.
During the time of the Holocaust, we in America where in a depression. So whenever the holocaust was over Germany owed a lot of mainey to a lot of countries. And since we trade imports and exports our flow of money from those imports and exports became less and less.