What can a government do to improve a trade deficit?
6 comments:
Anonymous
said...
The country may want to think about lowering the number of imported goods and servcies and think about exporting more. If you export more, you will make more money and possibly stay away from trade deficit. The more money you make exporting, you can spend more money importing good into your country. When exporting goods to a country you must follow the process in order for it to be sucessful, and in order to import goods there is a certain process you must follow.
The more money a country has, the higher its balance of trade will become. A trade deficit is a trade gap, so if importing slows down and they export a lot more it will help to decrease this.
Trade deficits are hard to eliminate. The government can, however, make incentives for exporters, to try and alleviate such a deficit. The government could also limit the number of imports, but that could negatively affect the economy.
If a country is experiencing a trade deficit there are few things it can do to jumpstart the economy. They are left with few options such as limiting the amount of imports and exporting more. They can give incentives to local companies if they agree to start exporting goods. They can also subsidize agriculture within their country.
What can a government do to improve a trade deficit?
First of all a government can stop being greedy. Second explore their options and see which one best suits their situation. Third, come up with a plan. And fourth, try and see if their country could start harvesting.
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6 comments:
The country may want to think about lowering the number of imported goods and servcies and think about exporting more. If you export more, you will make more money and possibly stay away from trade deficit. The more money you make exporting, you can spend more money importing good into your country. When exporting goods to a country you must follow the process in order for it to be sucessful, and in order to import goods there is a certain process you must follow.
The more money a country has, the higher its balance of trade will become. A trade deficit is a trade gap, so if importing slows down and they export a lot more it will help to decrease this.
Trade deficits are hard to eliminate. The government can, however, make incentives for exporters, to try and alleviate such a deficit. The government could also limit the number of imports, but that could negatively affect the economy.
If a country is experiencing a trade deficit there are few things it can do to jumpstart the economy. They are left with few options such as limiting the amount of imports and exporting more. They can give incentives to local companies if they agree to start exporting goods. They can also subsidize agriculture within their country.
Government can improve trade deficit by setting up a tax for imported goods or setting up a quota allowed into the country.
What can a government do to improve a trade deficit?
First of all a government can stop being greedy. Second explore their options and see which one best suits their situation. Third, come up with a plan. And fourth, try and see if their country could start harvesting.
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