You have new items in your feed. Click to view.
Question and answer
explain if a country would rather have a trade surplus or a trade deficit.
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 market _____. exists whenever buyers and sellers exchange goods and services does not involve monetary transactions to buy goods and services only includes squares set up in towns to sell goods and services
Weegy: barter User: The interaction between buyers and sellers in the marketplace leads to goods and services being distributed by _____. market share price force (More)
Question
Expert Answered
Asked 8/17/2011 4:58:47 PM
0 Answers/Comments
The interaction between buyers and sellers in the marketplace leads to goods and services being distributed by _____. market share price force
Weegy: Do you have options for this? Like multiple choice? (More)
Question
Expert Answered
Asked 8/17/2011 5:01:18 PM
0 Answers/Comments
A consumer uses goods and services to _____. make products using fair trade earn money by selling them satisfy economic wants
Weegy: Hold on while I pass this to another expert (More)
Question
Expert Answered
Updated 8/17/2011 7:26:12 PM
1 Answer/Comment
A consumer uses goods and services to satisfy economic wants.
Added 8/17/2011 7:26:12 PM
This answer has been added to the Weegy Knowledgebase
26,586,130 questions answered
Popular Conversations
What does the term "suffrage" mean? A. great suffering B. the ...
Weegy: The right of people to gather for whatever nonthreatening purpose they desire is: peaceful assembly. User: ...
12/6/2016 6:37:32 AM| 2 Answers
20 for $1.56
Weegy: 20+56= 76 User: $3.78 for 6
12/6/2016 7:28:29 AM| 2 Answers
What is believed to be one of the main reasons Secretary of State ...
Weegy: D. encourage foreigners to immigrate to the United States. User: For most of the 19th century, which nation ...
12/6/2016 9:45:21 AM| 2 Answers
The Presidential campaign for Calvin Coolidge was led by ___.
Weegy: The Presidential campaign for Calvin Coolidge was led by Charles Dawes. User: The philosophy that Western ...
12/6/2016 9:48:48 AM| 2 Answers
Weegy Stuff
S
P
Points 178 [Total 450] Ratings 1 Comments 168 Invitations 0 Offline
S
Points 67 [Total 67] Ratings 0 Comments 67 Invitations 0 Offline
S
P
Points 61 [Total 493] Ratings 0 Comments 61 Invitations 0 Offline
S
P
P
Points 43 [Total 722] Ratings 0 Comments 43 Invitations 0 Offline
S
Points 28 [Total 50] Ratings 0 Comments 18 Invitations 1 Offline
S
Points 18 [Total 18] Ratings 0 Comments 18 Invitations 0 Offline
S
Points 16 [Total 292] Ratings 0 Comments 16 Invitations 0 Offline
S
Points 10 [Total 10] Ratings 1 Comments 0 Invitations 0 Offline
S
Points 8 [Total 8] Ratings 0 Comments 8 Invitations 0 Offline
S
Points 1 [Total 1] Ratings 0 Comments 1 Invitations 0 Offline
* Excludes moderators and previous
winners (Include)
Home | Contact | Blog | About | Terms | Privacy | © Purple Inc.