oussama94
05-28-2017, 18:57
vThe trade balance shows the net difference over a period of time between
a nation’s exports and imports. When a country imports more than
it exports the trade balance will show a deficit, which is generally considered
unfavorable. For example, if U.S. dollars are sold for other domestic
national currencies (to pay for imports), the flow of dollars outside the
country will depreciate the value of the dollar. Similarly, if trade figures
show an increase in exports, dollars will flow into the United States and
appreciate the value of the dollar. From the standpoint of a national economy,
a deficit in and of itself is not necessarily a bad thing. If the deficit is
greater than market expectations, however, then it will trigger a negative
price movement.
a nation’s exports and imports. When a country imports more than
it exports the trade balance will show a deficit, which is generally considered
unfavorable. For example, if U.S. dollars are sold for other domestic
national currencies (to pay for imports), the flow of dollars outside the
country will depreciate the value of the dollar. Similarly, if trade figures
show an increase in exports, dollars will flow into the United States and
appreciate the value of the dollar. From the standpoint of a national economy,
a deficit in and of itself is not necessarily a bad thing. If the deficit is
greater than market expectations, however, then it will trigger a negative
price movement.