How does the trade balance affect the country, and what are the disadvantages of the trade industry

China's surplus in these years has brought China a lot of foreign exchange, but last year's global economic crisis also had a negative impact on our country, because it is the shrinkage of foreign exchange reserves, but in the case of the global economic downturn, China can also punch and reduce the shrinkage of foreign exchange reserves to the lowest point, that is, the global acquisition of inventory. However, as far as foreign trade is concerned for a long time, China's renminbi appreciation has undoubtedly brought us a lot of blows, the original yuan to one dollar and the current yuan to one dollar, the difference here must be clear to everyone, but as importers they are not willing to spend more. Therefore, relatively speaking, it is a little more difficult to make orders than before.

Some monopolies under administrative protection will suffer.

The best between countries is ultimately based on comparative advantage.

If the domestic ** of a good ** is higher than the world**, it means that the domestic ** of the good has no comparative advantage, in the consideration of profit maximization, the decision maker should import the good instead of producing it themselves.

International** Notes.

In foreign business activities, the relevant anti-monopoly laws and administrative regulations shall not be violated.

If monopolistic conduct is carried out in foreign business activities, endangering fair competition in the market, it shall be dealt with in accordance with the provisions of relevant anti-monopoly laws and administrative regulations.

In foreign business activities, it is not allowed to sell goods at unjustly low prices, collude in bidding, publish false advertisements, and engage in commercial bribery.

and other acts of unfair competition.

**Industry disadvantages are:

1. Sudden and substantial increase in orders:

When the buyer is of average size and the number of orders placed to the operator suddenly increases, and these orders are not transferred from other ** merchants, it is necessary to pay attention to whether the buyer has sufficient downstream sales capacity.

2. Transactions with a number of ** merchants at the same time

If the same type of product is scattered in multiple enterprises to procure, then the buyer may not really care about the supply capacity of the export enterprise, but to obtain more first-class merchants to sell on credit, so as to achieve the purpose of occupying upstream funds for their own financing.

3. High debt management:

When operating income does not cover financing costs.

Or when the financing institution tightens the policy, the buyer's capital situation will be seriously affected, and then the upstream ** business will be in arrears. You need to find out the details of high debt, including the actual level of debt, whether you are financing from a bank or another institution, how long the financing will be, and the continuity of the financing policy.

Pure industry: Pure industry is directly engaged in the purchase and sale of goods in the industry, divided into wholesale and retail, it directly embodies the social function of the front, is the main body of the organization of commodity circulation, is the basis of the social structure.

Wholesale ** specializes in God and is engaged in the production of units.

Purchased goods are resold to retailers or production units. It is at the starting point or intermediate stage of commodities, responsible for transferring commodities from the field of production to the field of circulation, from the place of origin to the place of sale, and is the link between the organization of commodity circulation between urban and rural areas, between regions, and between production departments and retail.

Retail** directly provides consumers with goods and services, which is the final link in the process of commodity circulation. Its basic function is to serve consumers and distribute the goods produced by society to consumers in the form of transactions. Commodities enter the consumer field through the retail link, ending the whole process of commodity circulation.

Retail** addresses the value of goods.

The ultimate realization is the foundation of society.

The proportional relationship between wholesale enterprises and retail enterprises must be coordinated with each other, which is an objective requirement for commodity circulation. The setting and layout of wholesale and retail institutions should follow the principles of service retail, efficiency priority, distribution and reduction of links, and taking into account both urban and rural areas, make overall planning, rational layout, and promote the circulation of urban and rural commodities.

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 import debt, 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, weakening the country's economic performance.

If we want to improve this situation, we must devalue the country's currency, because the value of the currency will fall, that is, the export goods will be reduced in disguise, which can improve the competitiveness of export products.

Therefore, when the country's foreign trade deficit widens, it will weaken the country's currency, making the country's currency**; Conversely, when there is a foreign trade surplus, it is good for the currency. Therefore, the international ** situation is a very important factor affecting the foreign exchange rate.

**Surplus refers to the fact that the total amount of exports of a country is greater than the total amount of imports in a specific year, also known as "excess".

The surplus is in a certain unit of time (usually calculated on an annual basis), 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, for Party A, is called **surplus.

A surplus is not necessarily good, and a surplus that is too high is a dangerous thing, which means that the economic growth is too dependent on foreign countries. The huge ** surplus has also brought about the expansion of foreign exchange reserves, which has brought greater appreciation pressure to the national currency.

Disadvantages: 1. The surplus weakens the effect of monetary policy and reduces the efficiency of social resource utilization.

2. The surplus increases the cost of foreign exchange reserves and increases the outflow of funds.

3. The surplus leads to excessive economic dependence on foreign countries, the space for national economic development is narrow, and the export structure is difficult to adjust.

4. The surplus has affected the process of interest rate marketization in the domestic financial industry.

**Trade deficit. It refers to the surplus, which refers to the fact that within a certain period of time, the total value of goods imported by Mu Xiaoliang from abroad exceeds the total value of domestic goods. The emergence of a ** deficit will lead to the outflow of domestic resources, increase external debt, and affect the national economy.

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The economic indicators that measure a country can also be calculated with a deficit, which refers to the fact that a country's imports and exports exceed the gross domestic product.

This negative amount is actually a deficit. Usually in some countries, because the total amount of goods produced by the national is insufficient, the national consumption needs to buy goods from abroad, but in the process of purchasing, the total amount of goods exceeds the goods produced in the country, which has a detrimental effect.

A large influx of goods imported by a country from other countries, with the intensification of competition, will lead to an increase in domestic imports of domestic goods and consumer goods, and imported goods will be sold at a lower level, which poses a threat to the goods produced within the country, which is equivalent to reducing the local economic expansion. in the economy.

At the same time of expansion, residents' consumption will exceed productivity, and the deficit represents economic growth to a certain extent. To a certain extent, the emergence of deficit can also reduce the link of international disputes, and the currency appreciation pressure of some countries.

In the long run, the impact of a deficit on a country can also be seen as a decline in employment, because a country imports more goods from abroad, and out of competition, its own goods will fall, and domestic firms will not have the capacity to produce costs.

Lower products, ** imports are greater than exports, the manufacturing industry will be greatly impacted, in this case, manufacturing enterprises will reduce employees or even reduce the wages of employees, which means that the country's dependence on imports is very high, correspondingly, the domestic employment rate will decline.

As far as the state is concerned, it is necessary to constantly readjust the structure of foreign trade and expand the surplus.

to adjust the structure, reduce the emergence of the first deficit, and improve the national employment rate to a certain extent.

When a country is in a deficit for a long time, the country's foreign exchange reserves will be greatly reduced, and the international competitiveness of the country's commercial and old products will be significantly weakened. The country is in a disadvantageous position to the outside world, and a large deficit will also make a large-scale outflow of domestic resources, increase foreign debt, and cannot bring effective operation to the economy, and a long-term deficit will also make the foreign debt more and more owed.

Under the conditions of economic openness, for the country, it is necessary to resolve the disadvantages of the deficit. ** A deficit can bring growth to the national economy in a short period of time, but if it is so for a long time, it will also make the entire country's economy stalemate. A long-term deficit may cause a large number of resources to be lost from home to abroad, so that the country's foreign debt increases and affects the operation of the national economy.

The meaning of the trade surplus and the deficit: In a country's foreign affairs, the total export value is greater than the total import value is called the surplus, and the total import value is greater than the total export value is called the deficit. 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 the currency of other countries to pay the debts of the exporting country, so that the national income will flow out of the country, so that the country's economic performance will be weakened.

In a certain unit of time (usually calculated on an annual basis), the two parties 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 quota, the difference is called **surplus for Party A, on the contrary, for Party B, it is called **deficit. The ** deficit, that is, the total export value is greater than the total import value, will lead to economic outflow, and the money will go to the pockets of other countries.

**Deficit refers to a period of time in which the total value of imported goods exceeds the total value of domestic goods. Impact: If external debt increases, domestic resources will flow to the outside world, affecting the normal economy.

**Difference refers to the difference between a country's total exports and total imports in a certain period of time, which is used to indicate a country's foreign income and expenditure.

The connotation of a strong currency is structurally divided into two levels:

1. The external value is manifested in the appreciation and depreciation of the market exchange rate of the local currency relative to other currencies;

2. The intrinsic value is manifested in the dominant position of money in the international monetary system, that is, the image of hard currency in the international payment system, the international clearing system, the international price system, and the international reserve system.

A strong currency simply means that the currency has a strong liquidity, no foreign exchange controls, and a high degree of transparency in monetary policy and related data. As for the rise or fall of the exchange rate, it is determined by market demand, and has nothing to do with strength or weakness.