ECO 212 Week 5 DQ 1 - 7530

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What is the affect of a trade surplus? What is the impact of a trade deficit? How do trade deficits and trade surpluses affect the firm you work for?

A trade surplus is when a county exports more than it imports. This results in an abundance of money coming into the country and will lead to a high and comfortable style of living for the citizens of the country. A trade deficit is the opposite. More is being imported than exported and so the country is spending more than it is making in trade. A country with a trade deficit would have a terrible standard of living and would, as a country, be in debt. A firm that was having a trade surplus would be able to offer its employees better wages and benefits. It would also be able to expand its operations if it wanted to and create even more excellent jobs. If the firm one was working for were having a trade deficit, if they were able to afford employees, they would probably pay the bare minimum and not be in a position to offer any benefits at all. In fact, they would most likely go out of business once their borrowers shut them off. 



Solution Description

What is the affect of a trade surplus? What is the impact of a trade deficit? How do trade deficits and trade surpluses affect the firm you work for?

A trade surplus is wh