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
Identify one each (1) benefit, (2) disbenefit, and (3) monetary cost that would impact each of the following projects: a.A new electrical distribution station in a developing pa


I need help with : an introduction to financial markets and institutions , 2 edition , brown, nesiba, burton

Task The following information has been extracted from the accounts of R Ltd., a manufacturer and distributor of home cordless phone in Hong Kong.

Compute the risk premium for the stock of Omega Tools if the risk free rate is 6%, the expected market return is 12%, and Omega's stock has a beta of .8.    Ome

Significance of Cost of Finance The cost of capital is Significance since of its application in the following areas as: i) Long-term investment decisions - In capital b

a debt off Rs1000 with interest at 10% compounded quarterly will be repaid by payments Rs. 200 at the end of 3 months and three equal payments at the end of 6 9 and 12 months. find

Before purchasing insurance we have to go through different factors. Among different important factors there are two most crucial aspects we should consider before buying insurance

mony is differnt from wealth and income

Setting a Reorder Point - ROP  Once the order quantity has been determined, the next question to be settled is when to place the order. If an order is released and it takes th