Questions tagged [balance-of-trade]
The balance-of-trade tag has no usage guidance, but it has a tag wiki.
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Why doesn't imports from receiving country match exports from sending country?
I was looking at import/export data between the Cayman Islands and the Netherlands on tradingeconomics.com (tradingeconomics.com/cayman-islands/imports/netherlands) and (tradingeconomics.com/...
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Did Hume or Ricardo show trade deficits are self-correcting?
Economist Paul Krugman said this in a 1993 journal paper:
The last 15 years have been a golden age
of innovation in international economics. must somewhat depressingly conclude, however, that this ...
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How does a country with lesser exports than imports get the foreign exchange to fund the excess?
Let's take a developing country.
Assume it's exports, tourism revenue, repatriation by workers working abroad all totally contribute 100$ of forex for the country per year.
And it's imports are 110$.
...
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Was the council bill system used in British India a wealth extraction mechanism?
Jason Hickel says that the council bill system used to pay exporters of Indian goods during the British Raj was a mechanism by which Britain extracted wealth from India without giving India anything ...
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Why do certain modern country leaders care about trade deficits so much?
A central tenet of mercantilism is that every country should strive to have favorable balance of payments. However, this theory has long been abandoned (or so it seems), but leaders still appear to ...
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When the country's currency is falling, does it make sense for Central Bank to intervene beyond curbing Volatity?
Consider a country who have more imports than exports. If the country's currency is falling badly with reference to the dollar (and the dollar is the main trading currency for the said country), then ...
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Is a balanced BOP (without taking the official reserves account into consideration, desirable in the real world?
In general, BOPs(without taking the official reserves account into consideration( aren't balanced.
A BOP surplus is generally a good sign if the correct goods and being exported and a BOP deficit is ...
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The gold standard and trade imbalances
I’ve recently come across a paper which states that trade imbalances during the gold standard caused outflows/inflows of gold from the country running the trade surplus/deficit thus securing balanced ...
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Could a mandatory intermediary for EU energy imports help in managing price spikes?
Due to the ongoing Russia-Ukraine war, there have been significant increases in the price of energy in Europe, not only for natural gas, but also for electricity and oil.
The problem seems to be that ...
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How does a trade deficit affect GDP?
How would an increase in the trade deficit affect GDP?
As per the majority of sources I’ve read such as Investopedia, they claim that GDP would decrease due to a decrease in the NX component of the ...
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How is North Korea paying for all its imports?
As far back as the 1980s it seems that North Korea has imported more than it exported. Given that they weren’t exactly a wealthy country back then, and as most countries stopped debt financing ...
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If the BOP is always equal to 0 then why would a trade imbalance cause currencies to fluctuate?
I am a bit confused in interpreting the correlation between a trade deficit/surplus & currency depreciation/appreciation. Considering BOP always equals 0 and a outflow in the current account is ...
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Why doesn't national savings, in aggregate, always equal to zero in monetary terms?
Referring to this question and this one
Imagine you had a closed economy with two people and they both started off with $100 dollars. How would net savings in aggregate ever not be zero? Anything ...
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How does the US have gross national savings while running a trade deficit?
If a country has a positive savings rate, that means that more money had to come into the country from somewhere outside of the country. However, we run a trade deficit, so we're actually sending more ...
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connection between foreign assets and trade surplus / deficits
I am reading Piketty's "Capital in the 21st Century" and in Chapter 5 he writes
"Furthermore, the evolution of a country's net foreign asset position is determined not only by the ...
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China's balance of payment and balance of trade - relation to inflation
I am struggling with understanding how China's balance of payments (negative, deficit) and balance of trade (positive, profit around 0.5 trln USD) affect it's inflation rate. Obviously, balance of ...
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How to define world interest rate using IS-LM-BP diagram?
Can you suggest where is the world interest rate in the economy which has a positive current account and a financial account surplus, fixed exchange rate and relative capital immobility? The graph of ...
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Net exports term in aggregate expenditure [duplicate]
This might be a basic question, which I don't yet understand. The aggregate expenditure (i.e., in my understanding, the total amount of inflation factored (i.e. real) money spent in the economy by its ...
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What is the difference between trade deficit and current account deficit?
I read this article and still don't understand the difference. "Spends more money on what it imports compared to the money it receives for what it exports" (how it defines current account deficit). "...
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Why is the Total Current Account Balance of World positive and does it mean that the world has a net Trade Surplus?
I wondered if it was possible for all countries to have a Trade Surplus - which turns out to be impossible because the total value of imports in the world must be equal to the total value of exports ...
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Why would expanding fiat paper issue lead to decreased exports?
I'm reading "A History of Money and Banking in the United States" by Murray Rothbard, and I'm having trouble understanding this one piece of history. Basically, the Massachusetts government issues ...
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How are trade deficits financed?
The usual answer is either "foreign debt" or "Foreign Direct Investment". But:
Why does that make sense?
And why wouldn't be financed otherwise like from importers taking out bank loans domestically ...
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How is India able to increase its foreign exchange reserves despite historically running a trade deficit?
Balance of Trade: https://tradingeconomics.com/india/balance-of-trade
Foreign Exchange Reserves: https://tradingeconomics.com/india/foreign-exchange-reserves
Remittances do help (avg. \$4B/mo) but ...
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Causes of trade deficit: Multiple views
I am trying to understand the causes and macroeconomic implications of running a trade deficit in the United States, and I came across a few different views on this topic. I'd like to know if there ...
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Sources of data for GDP and BoP accounts
When an American buys a coffee within the US, how does that 3.50 dollars worth of consumption expenditure make it's way to the US GDP account? Is the information obtained from the company's tax ...
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Why a Current Account deficit implies a Financial Account surplus [duplicate]
Every macro textbook out there states that if a country has a Current Account deficit, it must have a surplus in the Financial account, but I have not heard a convincing explanation.
Imagine a ...
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Why is trade deficit a good thing?
In general most economist agree that deficit is not a negative thing, but I have trouble understanding why
For example if country A has 10\$ and country A runs trade deficit to B of 2\$ per year, ...
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Why did no US politician start the trade war a decade earlier with China or possibly the Globe if it is a good thing to do? [closed]
Why did no US politician start the trade war with China (or possibly the Globe) a decade earlier if it is a good thing to do?
I am asking for a list of reasons for why not.
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Why is it so hard to understand NCO = NE?
A lot of explanations about this matter depend on the fact that the foreign cash could be seen as a foreign assets. They say like "if you export a car and earn 100 yen, then it means that you have now ...
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Where's a good place to find Information on Non-OCED countries?
I'm looking for Private Savings (Sp), Investment (I), Taxes (T), Government Spending (G) for India.
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how is a trade imbalance related to domestic savings?
I was confused by a statement in an article from Paul Krugman in the NY Times:
The reason America runs persistent trade deficits isn’t that we’ve
given away too much in trade deals, it’s that we ...
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Why a current account surplus is bond to lead to an appreciation of a currency?
I have got some confusion in trying to explain why a trade surplus is going to lead to an increase in the exchange rate. The usual logic goes as follows.
Export X > Import M
Demand for the country's ...
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Are services included in the calculation of a trade deficit?
Are services included in the calculation of a trade deficit?
Presumably measuring service exports is more difficult/less accurate(?) than for goods?
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Why do we say the US is in debt to China?
Apple import iPhones manufactured by factories in China. Apple has to pay for these Chinese manufacturers. So, Apple should be in debt with Chinese manufacturers. But why do we say the US government ...
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Is it true that the U.S has to run a chronic trade deficit with the rest of the world as a price to pay for being the world's reserve currency?
I have heard of the argument that in order for USD to be reserve currecy, the rest of the world must own enough USD to store it as reserves. In order for the rest of the world to own enough USD, U.S ...
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The term "Most Favoured Nation" is misleading to me. Please explain
My understanding
If Country A extends MFN status to Country B with reduced tariffs for a product, then it must treat all other nations in the same way. By this WTO encourages multilateral ...
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Why do exports include only hard products?
Looking at country lists by exports.
Diving into exports always shows things like gas turbines, computer hardware, petrolium -- all physical things.
None show things like exporting services: financial ...
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Trade in services between the US and China
International trade consists of both goods and services, yet in the case of US-China trade for some reason both the media and official government releases only seem to quote the goods component.
So ...
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Import/export by sector/country data source
I am looking for import/exports data by sector and country, with partner countries. The goal is to get a picture of overall imports/exports to/from a specific country with (possibly) all of its ...
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Which economical consequences could happen to a country if it forbiddes importing cars?
My country has major economical headaches each 10 years or so, like hyperinflation or defaults or things like that. It's been 17 years since the last major crisis (a larger crisis than the 1930's ...
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When finding targets in a trade war, does the goods balance or trade balance matter more?
By most measures, most people who look at trade balance, but it might include a good chunk of services imports/exports who might not be as readily subjected to tariffs.
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Recession and Net Export
When a country's economy is currently in recession (or has entered a recession), will the net export increase or decrease? What will happen to the major trade partner's net export (will it be the ...
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Abolishing all tariffs without reciprocity
Is a policy of abolishing tariffs without expecting other countries do so a sustainable economic policy? What are the arguments for or against it?
Fear of imports is very common among people. Money ...
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Balance of Trade ( Surplus and Deficit)
I'm new to economics. I want to ask that what remedies that the government can actually employ to address the deficit/surplus in the fish trade balances over time?
My attempt,
Trade deficit
(i) The ...
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Ban an import that is exported
Norway intends to shutdown the fur farming industry over the next 5+ years. In the meantime, can Norway ban imports and sales of fur without violating WTO regulation?
Are there alternative strategies?...
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Where UK finds money to sustain its negative trading balance?
UK had a negative trading balance for the last 20 years. Where does it find money to finance it? Is such situation sustainable?
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How does Russia have so much foreign exchange reserves?
Source
Russia is under U.S. sanctions. How does Russia have so much foreign exchange reserves?
user13954
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Why can we finance government deficit by having a trade deficit?
I encountered an example question regarding government deficit as follows:
$G-T=(S-I)-(X-M)$
where $G$ is government spending, $T$ is net tax (tax minus transfer payment), $S$ is total private ...
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Have UK exports (goods and services) to Ireland declined in value since 2011?
Where can I find the relevant Office Of National Statistics data on UK exports to Ireland? I want to know if the value of UK exports to Ireland has declined since 2011 and if so, does anyone know why ...
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Balance of Trade - Currency devaluation in a price taker economy
How will a real exchange rate devaluation affect Balance of Trade, if an economy is a price taker in world markets for both export and import?
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