Please define trade surplus, deficit and balance concepts. What currency strategy would you suggest to resolve a trade deficit problem? Please explain your answer with a numerical example.

Q: Since the 2000s, U.S. trade deficit in goods has increased the most with which of the following…

A: A trade deficit is an amount by which the cost of a country's imports exceeds its exports.

Q: How might a thriving entrepreneurial sector have a positive impact on the trade balance?

A: Trade balance refers to the numerical difference between a nation's exports and imports, reflecting…

Q: The balance of trade shows a deficit of $200 million. With the value of exports being $300 million,…

A: The nations around the world tend to interact with other nations, and get involved in international…

Q: Define and provide examples of the following concepts: 1. Comparative advantage 2. Balance of Trade…

A: Macroeconomics refers to the branch of economics that deals with the economy as a whole for example…

Q: If an economy has a widening trade deficit, which of the following monetary policy option will…

A: A trade deficit happens when there is a negative net sum or negative equilibrium in a worldwide…

Q: How big is the trade deficit relative to overall GDP?

A: The gross domestic product (GDP) is a standard measure of the value added created by the production…

Q: The balance of trade shows a deficit of $200 million. With the value of exports being $300 million,…

A: The values given are:- Balance of trade = -200 million -ve sign is there because the Trade balance…

Q: Do you think that the balance of economic power in the world has started to shift from west to east?

A: Economic power means having impact to a great extent since the country is able to produce, sell or…

Q: Illustrate the Advantage and disadvantages of Globalization

A: The process through which the world becomes interconnected due to an increase in trade along with…

Q: How could an increase in a nation's fiscal deficit increase its trade deficit?

A: Government budget deficit affects the trade deficits. Budget deficit occurs when spending increases…

Q: Evaluate how a growing trade deficit influences the US economy

A: The difference between exports and imports of goods and services in an economy is called the trade…

Q: Is trade deficit is a national problem for US yes or not?

A: Deficit happens once a country's imports exceed its exports throughout a given amount of your time.…

Q: We often hear that trade deficits are bad for a country. Should we agree or disagree with this…

A: Trade deficit is a situation which arises when the imports of the country exceeds its exports that…

Q: Is trade deficit always a problem? Support your answer with proper reasoning

A: No, trade deficit is not always a bad thing. A country which runs a trade deficit in general imports…

Q: Over the past four years, the US trade deficit has increased to $576.9 billion. Based on your…

A: In the face of globalization, the practice of maintaining trade deficits has become increasingly…

Q: Discuss how nations use expenditure-changing policies and expenditure-switching policies to achieve…

A: In this situation:- since the 1930s, nations have actively pursued internal balance as a primary…

Q: You have just been hired by the U.S. government to analyze the following scenario. Suppose the U.S.…

A: Economics refers to the social science that studies the production, distribution, and consumption of…

Q: Just a couple of years after the economic crisis, Spain managed to reduce their trade deficit, was…

A: Spain applied a policy of depreciating the value of its currency, this makes the prices of goods…

Q: In 2001, 2002, and 2003, Congress passed the series of tax cuts that President Bush had requested.…

A: The increased consumer spending due to the tax cuts leads the country towards a larger trade…

Q: It is impossible that a country runs a negative trade balance over decades.  True  False

A: Balance of trade is a concept through which a country can always keep track of all its imports and…

Q: Has trade deficit impacted the U.S. economic growth?

A: In international trade, different countries of the world import and export goods and services from…

Q: How can the United States improve trade deficit? Give three solutions.

A:

Q: Explain and illustrate with a diagram how a country’s current account deficit might cause a change…

A: A change in the currency account deficit affects a currency's value. Here let's take when the…

Q: balance trade has, in most cases been unfavorable. What could be the causes of this situation?

A: Balance of payment of a country shows that the number of finanacial transaction made between a…

Q: What does it mean by "monetary and fiscal policies in a closed economy" when pertaining to…

A: Monetary and fiscal policy are the two main macroeconomic tools that the government can use to…

Q: What do the terms internal balance and external balance mean in open-economy macroeconomics?

A: The open economy refers to the economy which has a trading relationship with the rest of the world.…

Q: In an economy open to trade, must a government budget deficit always be accompanied by an external…

A: An open economy is when that allows its citizens to make purchase or sale of goods and services to…

Q: Trade distortion effects increases estimates of the United States' trade deficit with China. To what…

A: Trade distortion refers to numerous regulations or factors which can alter or disrupt the natural…

Q: What do you think about the balance of economic power in the world that has started to shift from…

A: A shift in economic power refers to the shift in concentration and center of gravity of economic…

Q: What has been the impact of granting China permanent trade status? Who has benefitted?How much has…

A: International trade:International trade means buying and selling of goods and services from outside…

Q: Suppose the US goes into a recession where the economy is not growing very quickly (or is actually…

A: A trade deficit occurs when the US imports more products and services than it exports. When a…

Q: From time to time, a government official will argue that a country should strive for both a trade…

A: Trade surplus is a situation where the net exports- X(exports) are larger than M(imports). Trade…

Q: If domestic investment increases, and there is no change in the amount of private and public saving,…

A: If a nation's imports outweigh its exports over a specified time frame, a trade imbalance exists.

Q: The most recent trade data can be found on the BEA site. (Links to an external site.)  It shows that…

A: A discipline of economics called "international economics" studies the economic exchanges and…

Q: If a country has a trade deficit, what will occur?Choose one answer. Imports will exceed exports.…

A: If a country has a trade deficit, between the three, one will occur Imports will exceed exports.…

Q: In regulating the economy of a country, monetary and fiscal policies are needed to achieve economic…

A: Fiscal policy is implemented by the government. Monetary policy is implemented by the central bank