Foreign trade balance, Finance Basics

Assignment Help:

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.


Related Discussions:- Foreign trade balance

Agency relationship between government and the shareholders, Agency Relatio...

Agency Relationship between Government and the Shareholders Shareholders and via extension, the company they own operate within the environment requiring the charter or licens

Benefits ordinary share capital - financing, Benefits Ordinary Share Capita...

Benefits Ordinary Share Capital - Financing Benefits of using ordinary share capital in the financing They facilitate projects particularly long-term projects since they

Potential investors - measuring business performance, Potential Investors -...

Potential Investors - Measuring Business Performance Potential investors These parties are interested in a company in total both on long and short term basis in particula

Calculate the average daily stock cost, Question: Unsatisfactory contro...

Question: Unsatisfactory control of spare parts in a particular mechanical workshop is resulting in high carrying costs for some items and high stock-out costs for others. A st

Information signaling effect theory, Information Signaling Effect Theory ...

Information Signaling Effect Theory Advanced via Stephen Ross in year 1977, He argued such in an inefficient market; management can utilize dividend policy to signal significa

Growth rates and hypothetically, Growth Rates Most ...

Growth Rates Most Recent Fiscal Year Fiscal Year (-1) Fiscal Year (-2) Fiscal Year (-3) Annu

Calculate effective annual cost, What is the effective annual cost of skipp...

What is the effective annual cost of skipping the discount and paying at the end of the net period for the following credit terms: 6/10, net 70? please show work"

Assignment, Following details are related to three companies which are iden...

Following details are related to three companies which are identical except in terms of ''''r''''. Company ABC Ltd. MNC Ltd. XYZ Ltd. Cost of capital 10% 10% 10% Earn per Share Rs

Financial Institution Regulations, Why are financial institutions heavily r...

Why are financial institutions heavily regulated, with specific focus on their ability to increase or reduce the money supply?

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd