Research and analysis of the U.S. China trade balance

Hello, it is a pleasure to serve you and give you the following answers:1**Deficit:

A deficit is when the value of a country's exports of goods and services is less than the value of its imports, resulting in a deficit. Solution: First of all, policy measures can be taken, such as tax cuts, reduction of import tariffs, improvement of the environment, etc., to promote exports; Secondly, enterprises can strengthen research and development, improve product quality, and enhance export competitiveness; Finally, diversification can be promoted and export markets can be expanded to reduce deficits.

2.Equilibrium: Equilibrium is when the value of goods and services exported by a country is equal to the value of its imports, resulting in equilibrium.

Solution: First of all, policy measures can be taken, such as improving the environment of the collapse of the country, increasing export subsidies, etc., to promote exports; Secondly, enterprises can strengthen research and development, improve product quality, and enhance export competitiveness; Finally, we can promote diversification and expand the export market of the annual ring book to maintain a balance. 3.

Surplus: A surplus is when the value of a country's exports of goods and services is higher than the value of its imports, resulting in a surplus. Workaround:

First of all, policy measures can be taken, such as raising import tariffs and improving the environment, to promote imports; Secondly, enterprises can strengthen research and development, improve product quality, and enhance import competitiveness; Finally, diversification can be promoted and import markets can be expanded to reduce surpluses. Personal tip: The difference is an important indicator of a country's economic development, so companies should take effective measures to ensure the stability of the balance.

In addition, enterprises should also strengthen diversification and expand export and import markets to promote the healthy development of enterprises.

**The policy propositions of the difference theory mainly include the following aspects:

Currency control policy.

Balance theorists advocate that intervention in economic life, especially in the formulation and implementation of monetary policy, must be strictly regulated. It is advocated that the export of gold and silver should be strictly prohibited, and once imported, it must remain in the country. At that time, Britain made the export of gold and silver a serious crime, while Spain was the most severe, and the maximum penalty for exporting gold and silver was the death penalty.

On the other hand, countries are trying to absorb foreign gold and silver in various ways. The monetary policy of the late-stage difference theorists has been loosened and the pursuit of a surplus is emphasized.

Foreign monopoly policy.

At that time, all the countries of Western Europe practiced a policy of state control and monopoly over the international community. Through monopolies, Western European countries obtain cheap raw materials from their colonies, ship them back to their countries to process them into finished products, and then send them to colonial countries. For example, Portugal directly controlled its own country and the East, while Spain had a monopoly on cheap raw materials obtained from the American colonies.

Prize Exit Restriction Policy.

All countries have adopted various protective policies to encourage exports and restrict imports. For example, when it is difficult for domestic goods to compete with foreign goods internationally or domestically, various taxes levied on raw materials can be refunded, and subsidies can be given if necessary. There are also countries that use various measures to prevent the export of raw materials or semi-finished goods, encourage the export of manufactured goods, and reward merchants with cash for their own goods in foreign markets.

Countries almost invariably impose heavy taxes on imported consumer goods, making them so high that they are difficult for consumers to buy, while reducing import taxes on important machinery and equipment and raw materials.

Policies to encourage the development of domestic shipping.

Mercantilists believe that a strong merchant fleet is an important part of a country's developed foreign trade and strong economy, so it is necessary to actively develop the shipping industry and create favorable conditions for the export and transshipment of domestic goods. It was also argued that foreign vessels should be prohibited from engaging in domestic coastal shipping and shipping between the mainland and the colonies. For example, the British Navigation Act enacted in the 17th century is the most typical, stipulating that British ships must be used along the coast, and goods transported to Britain and British colonies from other countries must also use British ships.

The policy of developing the country's industry.

Difference theorists believe that a surplus can only be achieved by selling more goods. Therefore, it is necessary to vigorously develop domestic industries and enhance the competitiveness of domestic products in the world market in order to maintain export advantages. As a result, countries at that time had policies to encourage the development of their own industries.

The main contents of these policies are: (1) granting loans to workshop craftsmen on more favorable terms; (2) hiring foreign craftsmen at high salaries for the development of the country's technical industries and prohibiting the outflow of skilled workers from the country; (3) tariff reduction and exemption for imported new technology and equipment and restriction on the export of new technology and equipment in the country; (4) In order to reduce the cost of industrial production, countries generally implement a low wage system; (5) In order to improve the quality competitiveness of products, formulate various industrial management regulations and strengthen the quality management of product production.

**Generally speaking, the occurrence of the difference is mainly constrained by the political and economic development of a country. Secondly, artificially changing the import or export policy will also lead to changes in a country's foreign ** balance.

The first way to solve the ** gap is to simply increase imports or exports, which plays an important role in the change of a country's balance of payments. or reduce imports or exports; Another approach is to use economic instruments (such as tariffs, taxes, and subsidies) to control changes in the margin.

Measures to solve the problem of overtaking:

1.increase in import duties;

2.increase investment in science and technology to improve product quality;

3.improve the development of national industry;

4.Carry out peer-to-peer**.

**The theory of difference is the main doctrine of late mercantilism. It is emphasized that a country should make its exports exceed its imports, forming a favorable difference, that is, a surplus, in order to increase its gold and silver wealth. The main exponents are Thomas Meng of the United Kingdom, among others.

**Balance of trade is the difference between a country's total exports and imports over a certain period of time (e.g. one year, six months, one quarter, one month). When the total value of exports is equal to the total value of imports, it is called "** balance". When the total value of exports is greater than the total value of imports, there is a surplus, which is called "surplus" or "excess".

When the total value of imports is greater than the total value of exports, there is a deficit, which is called "deficit" or "excess". Typically, the surplus is represented as a positive number and the deficit is expressed as a negative number. A country's import and export balance is an important part of its current account in its balance of payments, and it is an important factor affecting a country's balance of payments.