You have new items in your feed. Click to view.
Question and answer
In 1 or 2 sentences, explain if a country would rather have a trade surplus or a trade deficit.[ANSWER IN YOUR WORDS PLEASE]
Generally, it is often assumed that a trade surplus is good for a country whereas a trade deficit is bad. [ This should be better put into context and sound something like: Trade imbalances are always negative in the long run, but a trade surplus might be considered the better of two evils. Why is that so? What are trade imbalances and where do they come from? Let’s start with explaining the
whole matter in an illustrative way. Imagine there are only two countries in the world that interact and trade with eachother. Country A exports more than country B, thus has a trade surplus and country B has the opposite position, exporting less than it imports resulting in a trade deficit. However, the story does not end here, the trade balance is only part of something bigger, the balance of payments. The balance of payments has to balance at all times very much like a regular balance sheet of a corporation. As a result, country A has to buy something from country B to offset the surplus in trade. This happens most often in forms of investment, may it be in government bonds, stock, housing, etc. Simplifying things, country A gives a sort of loan to country B in exchange for country B buying the products of country A. If you feel like that is the same as if your retailer of choice allows you to buy its products on credit, you are not that far from the truth. Your retailer likes it, because he can sell his production off more quickly and you, well you are just happy to posses whatever you have purchased. But back to our trade deficits. If a country runs trade deficits for an extended period of time, it will inevitably face troubles. It becomes very dependent on foreigners’ willingness to keep buying assets. If they stop doing so, country B’s currency will drop significantly. For the country running surpluses, the risk is simply that their export market breaks away when its currency appreciates significantly making its goods more expensive abroad. In addition, a devaluation of country B’s currency, decreases the value of the investments country A has made in country B. ]
Expert answered|bettyfit83|Points 20|
Question
Asked 6/4/2013 11:41:14 AM
0 Answers/Comments
Get an answer
New answers
Rating

There are no new answers.

Comments

There are no comments.

Add an answer or comment
Log in or sign up first.
Questions asked by the same visitor
Streptococci infections are spread by_______ .
Weegy: How are group A streptococci spread? These bacteria are spread by direct contact with nose and throat discharges of an infected individual or with infected skin lesions. [ The risk of spread is greatest when an individual is ill, such as when people have strep throat or an infected wound. Individuals who carry the bacteria but have no symptoms are much less contagious. Treatment of an infected person with an appropriate antibiotic for 24 hours or longer eliminates contagiousness. However, it is important to complete the entire course of antibiotics as prescribed. Household items like plates, cups and toys do not play a major role in disease transmission. › Communicable Disease? ] (More)
Question
Expert Answered
Asked 5/28/2013 2:48:52 PM
0 Answers/Comments
The only cure for the common cold and the flu is________. A.rest B.cold medication C.antibiotics
Weegy: The only cure for the common cold and the flu is C.antibiotics. (More)
Question
Updated 12/26/2014 2:53:21 AM
1 Answer/Comment
The only cure for the common cold and the flu is rest.
Added 12/26/2014 2:53:19 AM
This answer has been confirmed as correct, not copied, and helpful.
Public health systems seek to promote the health of an entire community by controlling the spread of disease. True or False
Weegy: Public health systems seek to promote the health of an entire community by controlling the spread of disease. Is true. [ ] (More)
Question
Expert Answered
Asked 5/28/2013 3:22:46 PM
0 Answers/Comments
Untreated diabetes can cause______ damage to your eyes, nerve fibers, and kidneys.
Weegy: Untreated diabetes can irreversible damage to your eyes, nerve fibers, and kidneys. (More)
Question
Updated 62 days ago|5/29/2016 10:29:24 AM
0 Answers/Comments
Hepatitis can cause severe liver damage if it is not treated properly. True or False
Weegy: True. Hepatitis can cause severe liver damage if it is not treated properly. (More)
Question
Expert Answered
Asked 5/28/2013 3:27:54 PM
0 Answers/Comments
25,809,503 questions answered
Popular Conversations
Weegy Stuff
S
P
L
Points 624 [Total 1374] Ratings 3 Comments 594 Invitations 0 Offline
S
L
P
P
P
Points 435 [Total 3183] Ratings 0 Comments 435 Invitations 0 Offline
S
P
Points 379 [Total 638] Ratings 1 Comments 369 Invitations 0 Offline
S
Points 364 [Total 785] Ratings 2 Comments 344 Invitations 0 Offline
S
L
P
P
P
Points 112 [Total 3816] Ratings 0 Comments 112 Invitations 0 Offline
S
Points 88 [Total 227] Ratings 0 Comments 88 Invitations 0 Offline
S
Points 21 [Total 71] Ratings 2 Comments 1 Invitations 0 Offline
S
1
L
L
P
R
P
L
P
P
R
Points 8 [Total 12606] Ratings 0 Comments 8 Invitations 0 Offline
S
Points 5 [Total 5] Ratings 0 Comments 5 Invitations 0 Offline
S
L
Points 3 [Total 1766] Ratings 0 Comments 3 Invitations 0 Offline
* Excludes moderators and previous
winners (Include)
Home | Contact | Blog | About | Terms | Privacy | © Purple Inc.