What are the implications of the trade deficit?

The so-called deficit refers to the fact that the total value of a country's imports is greater than the total value of exports in a specific year, commonly known as "excess of imports", reflecting that the country is in a disadvantageous position in the foreign market in that year. Similarly, a country's authorities should seek to avoid a long-term deficit, which would lead to an outflow of domestic resources and an increase in external debt. This situation will also affect the normal operation of the national economy

**Surplus is in a certain unit of time (usually calculated on an annual basis), ** of 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, it is called **surplus, 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.

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 appreciation pressure to the renminbi, and has also given the international protectionist forces a pretext that the huge surplus reflects the undervaluation of the renminbi. This has increased the pressure on RMB appreciation and financial risks, and increased the cost and difficulty of reforming the RMB exchange rate mechanism.

To put it simply, the deficit is when a country's imports are greater than its exports.

To say that the impact is multifaceted, the most obvious is the currency effect, if a country has a surplus, then its currency will continue to strengthen, and vice versa;

For example, the deficit between China and the United States has reached 40 billion, and such a large deficit has made the US dollar soft against the yuan, which has recently broken seven, which is enough to show that ** has a great impact on a country's currency.

With this, it has an impact on the manufacturing industry, China has a surplus with the United States, the appreciation of the renminbi, the formation of exchange rate costs for the manufacturing products invested abroad, and labor costs, which are disadvantages in the market share and profits of the manufacturing industry.

I feel that the United States in addition to the subprime mortgage crisis to bring economic blows or secondary, mainly to let China form a surplus in the first place, while raising the Chinese currency, as we all know, China's light industry textile market share in the United States is very good, because cheap, cheap labor, cheap currency costs, due to the continuous surplus led to China's foreign exchange reserves are very high, the dollar depreciates against the yuan, in a sense, China's foreign exchange began to shrink, the benefits of this can reverse the deficit between China and the United States, so that China and the United States are balancedThis means that the deficit is helpful for a country's manufacturing industry, and contrary to the above statement, it can inhibit the rise in costs and even the rise in prices.

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.

**Deficit, also known as "**indebted", its English name is trade deficits, specifically refers to the phenomenon that a country's or region's imports are greater than its exports within a specific period of time. Generally speaking, if a country or region has a deficit, it often means that it is in a relatively unfavorable state. 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.

Generally speaking, if you want to analyze whether a country or region has a deficit, you often need to refer to the external balance sheet published by the country or region on a regular basis, and to a certain extent, you can measure its external level. In real life, the external level of a country or region can be divided into three states according to the external balance sheet, namely deficit, surplus and balance. Among them, **balance, the English name is balance of trade, which specifically refers to the situation that the import value of a country or region is equal to the export value within a specific period of time.

**Deficit is when a country's or region's total imports are greater than its total exports. To put it simply, it's a deficit. **Deficits can have varying degrees of impact on a country's or region's economy.

**Bright deficits can lead to inflation. If the total import volume of a country or region increases, then it will lead to an increase in the amount of money, which will lead to inflation. This will lead to prices**, and the impact is three: inflation.

Impact 3: Inflation.

**Deficit is when a country's or region's total imports are greater than its total exports. To put it simply, it's a deficit. **The inverse cherry blossom bend may have different degrees of impact on the economy of a country or region.

**Deficits can lead to inflation. If the total import volume of a country or region increases, it will lead to an increase in the amount of money, which will lead to inflation. This will lead to price increases**, Impact 1: Fiscal pressure.

Impact 4: International credibility.

**Deficits can lead to an increase in fiscal stress in a country or region. Because imported goods need to be paid in foreign exchange, while exports need to be charged in foreign exchange. If the total amount of imports is greater than the total amount of exports, then more foreign exchange needs to be paid.

This will lead to a reduction in the country's or region's foreign exchange reserves, which in turn will increase fiscal pressure.

**Deficit may affect international credibility. If a country's or region's deficit is too large, it will lead to a decline in the credibility of the international community in that country or region. This will lead to a reduction in foreign investment, and the impact is two: jobs.

Impact 1: Fiscal pressure.

Impact 4: International credibility.

The collapse of trade and the easy deficit may lead to the expansion of Tonglu pure goods. If the total import volume of a country or region increases, then it will lead to an increase in the amount of money**, which will lead to inflation. This will lead to price increases**, Impact 1: Fiscal pressure.

Impact 4: International credibility.

Impact 4: Rent and round international reputation.