The balance of trade and factors affecting trade deficit .

Question

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Answer 1

Question

Definition Definition Increase in the amount of goods and services produced by a country in a given period of time compared to an earlier period. Economic growth is generally coupled with a rise in national income or the purchasing power of individuals. It is often measured in terms of the increase in a country's gross domestic product (GDP), or the overall monetary value of all the complete or final services and goods that a country can produce within its domestic boundaries in a specific period.

Chapter 27, Problem 1QP

To determine

The balance of trade and factors affecting trade deficit.

Expert Solution & Answer

Explanation of Solution

The difference between the values of export and import of a nation in a given period is known as the balance of trade or the net export. Balance of trade is an important component of the balance of payment of a country. The occurrence of deficit or surplus in the balance of payment depends upon the balance of trade. If the total value of export of a country is less than its imports, then there is a trade deficit. There are several factors that affect the trade deficit, such as value of currency, taste and preference of the consumers, money supply in the domestic economy, economic growth, and so on.

Economics Concept Introduction

Balance of trade: Balance of trade refers to the difference between the values of a country’s export and import.

Trade deficit: Trade deficit means that the value of import of a country is greater than the value of its export.

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Answer 2

Question

Definition Definition Increase in the amount of goods and services produced by a country in a given period of time compared to an earlier period. Economic growth is generally coupled with a rise in national income or the purchasing power of individuals. It is often measured in terms of the increase in a country's gross domestic product (GDP), or the overall monetary value of all the complete or final services and goods that a country can produce within its domestic boundaries in a specific period.

Chapter 27, Problem 1QP

To determine

The balance of trade and factors affecting trade deficit.

Expert Solution & Answer

Explanation of Solution

The difference between the values of export and import of a nation in a given period is known as the balance of trade or the net export. Balance of trade is an important component of the balance of payment of a country. The occurrence of deficit or surplus in the balance of payment depends upon the balance of trade. If the total value of export of a country is less than its imports, then there is a trade deficit. There are several factors that affect the trade deficit, such as value of currency, taste and preference of the consumers, money supply in the domestic economy, economic growth, and so on.

Economics Concept Introduction

Balance of trade: Balance of trade refers to the difference between the values of a country’s export and import.

Trade deficit: Trade deficit means that the value of import of a country is greater than the value of its export.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Definition Definition Increase in the amount of goods and services produced by a country in a given period of time compared to an earlier period. Economic growth is generally coupled with a rise in national income or the purchasing power of individuals. It is often measured in terms of the increase in a country's gross domestic product (GDP), or the overall monetary value of all the complete or final services and goods that a country can produce within its domestic boundaries in a specific period.

Chapter 27, Problem 1QP

To determine

The balance of trade and factors affecting trade deficit.

Expert Solution & Answer

Explanation of Solution

The difference between the values of export and import of a nation in a given period is known as the balance of trade or the net export. Balance of trade is an important component of the balance of payment of a country. The occurrence of deficit or surplus in the balance of payment depends upon the balance of trade. If the total value of export of a country is less than its imports, then there is a trade deficit. There are several factors that affect the trade deficit, such as value of currency, taste and preference of the consumers, money supply in the domestic economy, economic growth, and so on.

Economics Concept Introduction

Balance of trade: Balance of trade refers to the difference between the values of a country’s export and import.

Trade deficit: Trade deficit means that the value of import of a country is greater than the value of its export.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Definition Definition Increase in the amount of goods and services produced by a country in a given period of time compared to an earlier period. Economic growth is generally coupled with a rise in national income or the purchasing power of individuals. It is often measured in terms of the increase in a country's gross domestic product (GDP), or the overall monetary value of all the complete or final services and goods that a country can produce within its domestic boundaries in a specific period.

Chapter 27, Problem 1QP

To determine

The balance of trade and factors affecting trade deficit.

Expert Solution & Answer

Explanation of Solution

The difference between the values of export and import of a nation in a given period is known as the balance of trade or the net export. Balance of trade is an important component of the balance of payment of a country. The occurrence of deficit or surplus in the balance of payment depends upon the balance of trade. If the total value of export of a country is less than its imports, then there is a trade deficit. There are several factors that affect the trade deficit, such as value of currency, taste and preference of the consumers, money supply in the domestic economy, economic growth, and so on.

Economics Concept Introduction

Balance of trade: Balance of trade refers to the difference between the values of a country’s export and import.

Trade deficit: Trade deficit means that the value of import of a country is greater than the value of its export.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 27, Problem 1QP

To determine

The balance of trade and factors affecting trade deficit.

Expert Solution & Answer

Explanation of Solution

The difference between the values of export and import of a nation in a given period is known as the balance of trade or the net export. Balance of trade is an important component of the balance of payment of a country. The occurrence of deficit or surplus in the balance of payment depends upon the balance of trade. If the total value of export of a country is less than its imports, then there is a trade deficit. There are several factors that affect the trade deficit, such as value of currency, taste and preference of the consumers, money supply in the domestic economy, economic growth, and so on.

Economics Concept Introduction

Balance of trade: Balance of trade refers to the difference between the values of a country’s export and import.

Trade deficit: Trade deficit means that the value of import of a country is greater than the value of its export.

Answer 6

Chapter 27, Problem 1QP

To determine

The balance of trade and factors affecting trade deficit.

Expert Solution & Answer

Explanation of Solution

The difference between the values of export and import of a nation in a given period is known as the balance of trade or the net export. Balance of trade is an important component of the balance of payment of a country. The occurrence of deficit or surplus in the balance of payment depends upon the balance of trade. If the total value of export of a country is less than its imports, then there is a trade deficit. There are several factors that affect the trade deficit, such as value of currency, taste and preference of the consumers, money supply in the domestic economy, economic growth, and so on.

Economics Concept Introduction

Balance of trade: Balance of trade refers to the difference between the values of a country’s export and import.

Trade deficit: Trade deficit means that the value of import of a country is greater than the value of its export.

Answer 7

Chapter 27, Problem 1QP

To determine

The balance of trade and factors affecting trade deficit.

Answer 8

Expert Solution & Answer

Explanation of Solution

The difference between the values of export and import of a nation in a given period is known as the balance of trade or the net export. Balance of trade is an important component of the balance of payment of a country. The occurrence of deficit or surplus in the balance of payment depends upon the balance of trade. If the total value of export of a country is less than its imports, then there is a trade deficit. There are several factors that affect the trade deficit, such as value of currency, taste and preference of the consumers, money supply in the domestic economy, economic growth, and so on.