Why is it bad to have a trade deficit that is too large?

causes inflation, explained as follows:

** If the surplus is too large or the accumulation is too large, it will cause the surplus country to invest in the domestic currency.

For example; A country's GDP is 10 trillion US dollars, with a surplus of 500 billion US dollars; If the surplus is zero, the country only needs to issue the equivalent of 10 trillion US dollars in currency to be in circulation, but now there is a surplus of 500 billion US dollars, then the country needs to print an additional 500 billion US dollars of currency, thus causing domestic inflation in the country.

If the import value is greater than the export value, it is called over-entry, that is, **deficit, or **deficit. It indicates that a country's foreign exchange reserves are decreasing, the country's goods are not internationally competitive, and it is in a disadvantageous position in the international market.

The two sides buy and sell various goods to each other, import and export each other, Party A's export amount is greater than Party B's export amount, or Party A's import amount is less than Party B's import amount, the difference is called **surplus for Party A, on the contrary, for Party B, it is called **deficit. Generally speaking, in terms of the interests of both parties, the party that gets the surplus is the party that takes advantage, and the party that gets the deficit is the party that suffers. You can look at it this way, ** is to make money.

And the side with a surplus is a net profit; The side with the deficit is the net payout.

Therefore, it is easy to understand that if the deficit is too large, the more money you lose, the greater the pressure on a country's economy, and the more you lose.

The deficit is too large, the capital is outflowed, and the money is earned by foreigners, so there should be a surplus.

**The deficit is too large, which will exert depreciation pressure on the domestic exchange rate and affect the internal and external equilibrium.

**Surplus refers to the fact that, for a certain period of time, the total value of goods exported by a country or region exceeds the total value of goods imported from abroad.

**Deficit refers to the total value of goods imported from abroad by a country or region over a certain period of time.

A larger surplus is not necessarily better, and a surplus that is too high is a dangerous thing, meaning that the growth of the domestic economy is more dependent on external demand than at any time in the past few years, and the dependence on foreign countries is too high.

The huge surplus has also brought about the expansion of foreign exchange reserves, which has brought greater pressure on the currency to appreciate, and has also given the international protectionist forces a pretext that the huge surplus reflects the undervaluation of the currency. This has increased the pressure of currency appreciation and financial risks, and increased the cost and difficulty of reforming the currency exchange rate mechanism.

When a country has a deficit, it means that the country's foreign exchange reserves are reduced, the international competitiveness of its commodities is weakened, and the country is in a disadvantageous position for foreign affairs during the period. A large deficit will intensify the outflow of domestic resources, increase foreign debt, and affect the normal and effective operation of the national economy.

Therefore, a long-term deficit should be avoided. If a country often has a deficit, in order to pay the debt of imports, it must sell its own currency in the market to buy other countries' currency to pay the debts of the exporting country, so that the national income will flow out of the country, making the country's economic performance weaker.

Deficit, also known as overtradedeficits, specifically, the phenomenon that a country or region imports more than exports at a given time. Generally speaking, if a country or region has a deficit, it often means that it is relatively unfavorable to the outside world.

The opposite of the "** deficit" is the "** surplus", which specifically refers to the phenomenon that a country's or region's exports are greater than its imports in a specific period of time.

**Deficit Profile.

Generally speaking, to analyze whether a country or region has a deficit, it is often necessary to refer to the external balance sheet published by the country or region on a regular basis, and measure its external level to a certain extent. In real life, the external level of a country or region can be divided into three states: deficit, surplus and balance according to the external balance sheet. Specifically, the import value of a country or region is equal to the export value within a specific time.

<>** deficit refers to the ** deficit that occurs as a result of a country's international deficit in the value of exported goods and services being less than the value of imported goods and services. It is a relatively easy to understand concept, that is, an imported goods are more than exported goods, that is, the value of a purchased goods is more than the value of exported goods, which is called a **deficit.

The deficit can be understood from the total amount and the balance, the total amount refers to the total value of a country's exports in a certain period of time, and the balance refers to the total value of imports minus the total value of exports, if the balance is negative, that is, the total value of exports is less than the total value of imports, it indicates that the country has a deficit.

**There are many reasons for deficits, but the main reason for them is the impact of currency exchange rate movements. When the exchange rate of a country's currency appreciates, consumers in the country can buy more foreign goods, and foreign consumers buy goods in the country without nuclear cracking, which leads to an increase in imports and a decrease in exports, resulting in a deficit.

In addition, the adverse effects of a country's domestic policies can also lead to a deficit. For example, the policy of restricting imports or exports, the unreasonable tax policy, and the instability of the exchange rate policy will lead to a deficit.

Deficits have a big impact on a country's economy. First of all, the deficit affects a country's currency, and the depreciation of a country's currency affects the country's ability to pay internationally, which in turn affects a country's economic development. Second, a deficit will affect a country's investment environment, and an excessive deficit will inhibit investment, thus affecting a country's economic development.

In order to alleviate the deficit, we must first implement an effective monetary policy to prevent the currency exchange rate from changing too quickly, stabilize the currency exchange rate, and maintain the balance. Second, it is necessary to implement a positive foreign trade policy, improve the export environment, improve the quality of export products, and reduce the quality of export products, so as to promote export growth. In addition, it is necessary to strengthen import control, control imports, and reduce the occurrence of a deficit.

Deficit refers to a country's deficit in the international market, the value of exported goods and services is less than the value of imported goods and services, and the resulting deficit is mainly due to the impact of currency exchange rate changes. The deficit will affect a country's currency, investment environment and economic development, and in order to alleviate the deficit, effective monetary policy, active foreign trade policy and import controls should be strengthened.

For example, if you have a batch of goods, exported to foreign countries, sold for 100,000 yuan, and used the 100,000 yuan to buy a batch of goods abroad, such as renting a sedan chair, sold to customers in the national slag store, and sold 120,000 yuan, so that the type of reed in the customs record is the first deficit of 20,000 yuan.

For example, you tasted the sweetness, exported a batch of goods, earned 100,000 yuan, and used the 100,000 to buy a batch of goods abroad, and wanted to sell them to domestic customers, who knows that there are unforeseen circumstances, these goods have not yet arrived in the country due to natural disasters, so that the record of the customs is the first surplus of 100,000.

The surplus and deficit are mainly manifested in the external *** nuclear core.

The total value of domestic imports is greater than the total value of exports.

Otherwise, there is a surplus.

But it's not all products.

For example, the turnover of handicrafts such as silk and ceramics in China is a surplus for the United States... Xiang Pai digging.

However, the turnover of high-tech products is in deficit.

It can't just be boiled down to good things or bad things.

But generally for the country. Envy Liang surplus is a good thing.