Foreign trade balance, Finance Basics

Foreign Trade Balance

If the Government buys or imports much more than it sells or exports there will be a trade deficit such will require financing.The most important source of financing could be debt. This Government would one time again go into the market and there it borrow and reason an upward pressure on funds available for lending.

This reasons the interest rates to go up. If there was a favorable balance of trade after that the Government could not borrow and the interest rates could keep relatively stable.

Posted Date: 1/30/2013 3:07:51 AM | Location : United States







Related Discussions:- Foreign trade balance, Assignment Help, Ask Question on Foreign trade balance, Get Answer, Expert's Help, Foreign trade balance Discussions

Write discussion on Foreign trade balance
Your posts are moderated
Related Questions
Basic economic order quantity (EOQ) model  This model is one of the oldest and most commonly used in inventory control. It is based on a number of assumptions:  The dem

The Audiology Department at Randall Clinic offers many services to the clinic’s patients. The three most common , along with cost and utilization data, are as follows: Service Var


What are the financial fluctuations? Financial Fluctuations: a. Financial market fluctuations can be a basis of macroeconomic instability. b. Are markets irrational? c


given profit margin 7%, total asset turnover is 1.94, Return on equity is 23.7%, what is the debt equity ratio

Plastic Money or Credit Card Finance This is finance of a kind whereby a company will make arrangements for the use of the services of credit card organizations via the purcha

What are the types of financial assets? Types of Financial Assets: a. Loans b. Bank Deposits c. Stocks A share of ownership within a company d. Bonds A promis

Determinants of Required Rate of Return 1.Risk free rate - This is the interest rate such would exist on default free securities like Treasury bills and bonds. Risk free