In a recession, the trade balance often improves because

Q: Explain how changes in various economic factors affect a country's current account balance.

A: The current account balance of a country exhibits its transactions with the rest of the world. It is…

Q: If the trade deficit of the United States increases, how is the current account balance affected?

A: Balance of payment refers to the record of the international transactions that the domestic country…

Q: What are the major issues with regard to trade imbalances for low- and middle-income countries?

A: Trade imbalances: The negative balance of trade shows the trade deficit which means that the country…

Q: If imports exceed exports, is it a trade deficit or a trade surplus? What about if exports exceed…

A: ANS If the total amount of goods & services a country imports from other countries of the world…

Q: How does globalization directly/indirectly affect the GDP of a country

A: The measure that depicts the value of goods and services being produced in a country during a…

Q: So I don't need to fill out anything for net exports?

A: A country's overall output of goods and services is referred to as its gross domestic product. GDP…

Q: Why is the bilateral trade balance not necessarily a good measure of the trade relationship between…

A: The bilateral trade stability, which measures the difference between the value of goods and services…

Q: What are the major issues with regard to trade imbalances for the U.S. economy?

A: The United States is one of the world’s strongest nations which also has an all round accepted…

Q: why is the recovery of global economy, especially the Euro Zone, so important to the South African…

A: Economy can be democratic or it can be under dictatorship or it can be communist. For example United…

Q: Why is Global integration important

A: The extent to which a company's products and methods can be used in other nations is referred to as…

Q: Both the United States and global economies are booming. Will U.S. imports and/or exports increase?

A: The business cycle represents those periods of cyclical fluctuations that occur in an economy in…

Q: What is the difference between trade deficits and balance of trade?

A: Trade refers to transferring services and goods from one person/entity/country to another in…

Q: Description and substantiation of positive and negative aspects of globalization.

A: Globalization refers to the integration and interaction of different firms, businesses, countries or…

Q: Why does a recession cause a trade deficit to increase?

A: A recession is a situation that curbs the economy and follows a downturn to the economic growth and…

Q: What is more important, a country’s current account balance or GDP growth? Why?

A: The concept of the current account balance is narrow as compared to the concept of the GDP. The…