oussama94
05-28-2017, 23:43
In general, countries might experience positive or negative trade, as
well as positive or negative ******* flow balances. In order to minimize the
net effect of the two on the exchange rates, a country should try to maintain
a balance between the two. For example, in the United States there is a
substantial trade deficit, as more is imported than is exported. When the
trade balance is negative, the country is buying more from foreigners than
it sells and therefore it needs to finance its deficit. This negative trade flow
might be offset by a positive ******* flow into the country, as foreigners buy
either physical or portfolio investments. Therefore, the United States seeks
to minimize its trade deficit and maximize its ******* inflows to the extent
that the two balance out.
well as positive or negative ******* flow balances. In order to minimize the
net effect of the two on the exchange rates, a country should try to maintain
a balance between the two. For example, in the United States there is a
substantial trade deficit, as more is imported than is exported. When the
trade balance is negative, the country is buying more from foreigners than
it sells and therefore it needs to finance its deficit. This negative trade flow
might be offset by a positive ******* flow into the country, as foreigners buy
either physical or portfolio investments. Therefore, the United States seeks
to minimize its trade deficit and maximize its ******* inflows to the extent
that the two balance out.