answersLogoWhite

0


Want this question answered?

Be notified when an answer is posted

Add your answer:

Earn +20 pts
Q: Is it good to run trade surplus and bad to run trade deficit?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Continue Learning about Economics

Which is better Trade Surplus or Trade Deficit Why?

This is really like asking whether a broken arm or a broken leg is better. Trade deficits are bad, m'kay? If you have one, you have to borrow money to pay for the things you import (because you get money by selling goods to other countries), your citizens don't have as much work as they could, and another country gets rich at your expense. A trade surplus is bad too. If you have one, the country you have it with might implement protective tariffs to slow down your exports and encourage its countrymen to start factories to make the things you're exporting to them. The ideal situation is balanced trade--importing no more than you export.


Whether fiscal deficit is always bad?

Fiscal deficit is not always bad.... deficit arises from two parts - capital deficit and revenue deficit. now revenue deficit is obviously bad for economy stating that we are not able to pull money sufficient to meet our revenue and there is no asset creation. on the other hand if major fiscal deficit is coming from capital deficit its not all that a bad news. after all asset creation is taking place. n such moves are welcome.


Is fair trade good?

fair trade is good because people who engage in it also aim to pay their workers a fair price. fair trade is not bad but very good


What are the advantages of a current account surplus?

Current account surplus means your countries saving exceed investments in your countries. Whech means your country is a net lender with the rest of the world. It also means your balance of payments is essential on the credit side in the current account and debit side in the financial account. This brings advantages such as usually appreatiation of the currency, balance of trade surplus ( high amount of exports), and usually buying leverage in other countries but there are alot of factor and variables in the foreign exchange market that can effect currency. I know for sure thou that a trade surplus and defcit are neither good or bad and eventually have to reverse.


Is free trade good or bad?

They are normally bad because it doesn't help country's get ahead with out being taxed a whole bunch! There's also natural barriers like mountains and rivers which limit trade.

Related questions

Which is better Trade Surplus or Trade Deficit Why?

This is really like asking whether a broken arm or a broken leg is better. Trade deficits are bad, m'kay? If you have one, you have to borrow money to pay for the things you import (because you get money by selling goods to other countries), your citizens don't have as much work as they could, and another country gets rich at your expense. A trade surplus is bad too. If you have one, the country you have it with might implement protective tariffs to slow down your exports and encourage its countrymen to start factories to make the things you're exporting to them. The ideal situation is balanced trade--importing no more than you export.


Whether fiscal deficit is always bad?

Fiscal deficit is not always bad.... deficit arises from two parts - capital deficit and revenue deficit. now revenue deficit is obviously bad for economy stating that we are not able to pull money sufficient to meet our revenue and there is no asset creation. on the other hand if major fiscal deficit is coming from capital deficit its not all that a bad news. after all asset creation is taking place. n such moves are welcome.


What would happen if you didn't import?

You would export alot, and would have a no trade deficit whatsoever. Too bad it'll never happen.


What is the effect of deficit spending?

bad very bad


What the difference is between deficit or surplus budgets and national debt?

,surplus is when your budget adds up to less than your income, so you have savings left to spend.deficit is the other way around; when you have to spend more than your income, wch is really bad, it literally means you eventually go broke.by jazelle francis


Is trade good or bad?

it really depends on the reason why you trade. for example if one wishes to trade guns that is bad or if one wishes to trade fruit it could be good. But it does sho comradery and alliance and trust with other countries.


Was the fur trade a good thing or a bad thing?

It was a very good thing


Is fair trade good?

fair trade is good because people who engage in it also aim to pay their workers a fair price. fair trade is not bad but very good


What are the advantages of a current account surplus?

Current account surplus means your countries saving exceed investments in your countries. Whech means your country is a net lender with the rest of the world. It also means your balance of payments is essential on the credit side in the current account and debit side in the financial account. This brings advantages such as usually appreatiation of the currency, balance of trade surplus ( high amount of exports), and usually buying leverage in other countries but there are alot of factor and variables in the foreign exchange market that can effect currency. I know for sure thou that a trade surplus and defcit are neither good or bad and eventually have to reverse.


Will the Jay Cutler trade be good or bad for the Denver Broncos?

While they did get good value, it's hard to trade an established QB. I think it's a wash.


Is free trade good or bad?

They are normally bad because it doesn't help country's get ahead with out being taxed a whole bunch! There's also natural barriers like mountains and rivers which limit trade.


Would a Rayquaza lv 100 be a good trade for a Deoxys?

It depends if you have more then one Rayquaza. If you have one, it is a bad trade.