Notice: Payments for answers will end 4/10/2017. Click for more info.
You have new items in your feed. Click to view.
Question and answer
Q: explain if a country would rather have a trade surplus or a trade deficit.
A: When a nation has a trade surplus, it has control over the majority of its own currency. This causes a reduction of risk for another nation selling this currency, which causes a drop in its value. [ When the currency loses value, it makes it more expensive to purchase imports, causing an even a greater imbalance. Because a trade surplus usually creates a situation where the surplus only grows
(due to the rise in the value of the nations currency making imports cheaper), there are many arguments against Milton Friedman's belief that trade imbalances will correct themselves naturally. Economic theory dictates that a trade deficit is not necessarily a bad situation because it often corrects itself over time. However, a deficit has been reported and growing in the United States for the past few decades, which has some economists worried. This means that large amounts of the U.S. dollar are being held by foreign nations, which may decide to sell at any time. A large increase in dollar sales can drive the value of the currency down, making it more costly to purchase imports. ]
Expert answered|hanzyboy|Points 3898|
Question
Asked 8/24/2011 2:14:03 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
A benefit is _______. [the cost of a decision] [the disadvantages of a decision] [an in-depth study] [what is gained when a decision is made]
Question
Not Answered
Updated 8/18/2011 5:23:14 PM
1 Answer/Comment
A benefit is what is gained when a decision is made.
Added 8/18/2011 5:23:14 PM
This answer has been confirmed as correct and helpful.
Confirmed by yumdrea [5/13/2016 7:49:05 PM]
Markets exist wherever _____ and _____ exchange goods and services. [buyers, sellers] [producers, entrepreneurs] [sellers, producers]
Weegy: Markets exist wherever BUYERS and SELLERS exchange goods and services. (More)
Question
Expert Answered
Updated 5/28/2015 3:45:45 AM
0 Answers/Comments
26,823,355 questions answered
Popular Conversations
What does throttle mean?
4/16/2018 10:25:30 AM| 5 Answers
How many amino acids are there? A. Three B. Seven C. ...
Weegy: Amino acids are organic compounds that combine to form proteins.
4/20/2018 7:55:39 AM| 3 Answers
Solve 7(x - 3) = -70.
Weegy: Step 1. 5x-10-3x+12=10 Step 2. 2x+2=10 Step 3. 2x=8 ...
4/20/2018 11:45:54 AM| 3 Answers
Ancient cyanobacteria released ______, which assisted in creating the ...
Weegy: Cyanobacteria, is a phylum of bacteria that obtain their energy through photosynthesis. User: The epoch in ...
4/16/2018 10:31:53 AM| 3 Answers
What is the double jeopardy principle
Weegy: Principle is a law or rule that has to be, or usually is to be followed, or can be desirably followed, or is an ...
4/19/2018 6:55:12 PM| 3 Answers
Binary star
Weegy: Binary means composed of two pieces or two parts. User: Constellations
4/24/2018 12:12:08 PM| 2 Answers
What’s 307,495 rounded to the nearest thousand
Weegy: 307,495 rounded to the nearest thousand is 307,000. User: Which of the following statements about the number ...
4/20/2018 6:40:52 PM| 2 Answers
Find the next term for sequence 9, 6, 4
4/20/2018 9:05:24 PM| 2 Answers
Weegy Stuff
S
P
L
P
P
P
P
Points 246 [Total 672] Ratings 0 Comments 246 Invitations 0 Offline
S
R
L
R
Points 231 [Total 369] Ratings 0 Comments 31 Invitations 20 Offline
S
1
L
L
P
R
P
L
P
P
R
P
R
P
R
Points 220 [Total 13023] Ratings 0 Comments 210 Invitations 1 Offline
S
L
Points 97 [Total 97] Ratings 1 Comments 57 Invitations 3 Offline
S
Points 71 [Total 71] Ratings 0 Comments 21 Invitations 5 Offline
S
Points 50 [Total 50] Ratings 0 Comments 0 Invitations 5 Offline
S
P
L
Points 35 [Total 126] Ratings 0 Comments 35 Invitations 0 Offline
S
Points 30 [Total 35] Ratings 3 Comments 0 Invitations 0 Offline
S
P
Points 24 [Total 68] Ratings 0 Comments 24 Invitations 0 Offline
S
Points 20 [Total 20] Ratings 1 Comments 0 Invitations 1 Offline
* Excludes moderators and previous
winners (Include)
Home | Contact | Blog | About | Terms | Privacy | © Purple Inc.