Is it trade deficit or trade surplus that contributes more to economic growth? Why? What are the...

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Economics

Is it trade deficit or trade surplus that contributes more toeconomic growth? Why?
What are the factors that increase and decrease the demand for aforeign currency?
What are the impacts of currency devaluation and revaluation oninternational trade?
What is currency war? How does it affect trade betweencountries?

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4.4 Ratings (672 Votes)

Solution i1 iA itrade isurplus irefers ito ian ieconomic imeasure iwhich ireflects ipositive ibalance iof itrade iwhere ia icountrys iexports iexceed iits iimports iIt idefines inet iinflow iof idomestic icurrency ifrom iforeign imarkets iA itrade isurplus ishows ithat iwhen ithere iis ihigh idemand ifor ia icountrys igoods iin ithe iglobal imarket iwhich ipush ithe iprice iof ithose igoods ihigher iand ileads ito ia idirect istrengthening iof ithe idomestic icurrency iof ia icountry iIt icontributes iin icreating imore iemployment iand ieconomic igrowth ibut iit imay ilead ito ihigher iprices iand iinterest irates iin ia icountrys ieconomy iIt ihelps ito istrengthen ia icountrys icurrency irelative ito iother icurrencies iwhich iaffects icurrency iexchange irates A itrade ideficit iis ia iopposite ito itrade isurplus iIt ishows imeasurement ithat iwhen ia icountry iimports imore ithan iit iexports iIn isimple iwords iwhen ia icountry iis ibuying imore igoods iand iservices iinstead iof iselling iFurther iit ican ibe ia isign iof ia istrong ieconomy iand iin isome icertain icases iit ican ilead ito istronger ieconomic igrowth ifor ithe ideficitrunning icountry iin ithe ifuture iTherefore iforeign ilending iand iinvestment iwhich ishow itrade ideficit iin ibalance iof itrade ican ibe ia isource iof ilongterm ieconomic igrowth See Answer

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