Category: Economics
Trade Report, Trade Analysis, Trade Review
Trade report proves to be of great use in understanding the pattern and trends of trade. It also comes in handy in analyzing bilateral and multilateral trading systems and various trade policies that regulate the trading systems across the world.
Trade Deficit
A Trade Deficit occurs when the value of a country’s imports exceed its exports for a specific period of time, usually a year. The relationship between imports and exports are called the trade balance. When exports exceed imports it is called a trade surplus. Trade deficits can occur in both developing and advanced countries. The United States, for example, has been running a trade deficit for many years. While a trade surplus contributes to the GDP of a nation, a trade deficit will reduce GDP.
Trade Barrier
Trade barriers refer to government-imposed policies to restrict international trade. Most commonly, a country’s government employs tariffs, duties, embargoes and subsidies as trade barriers. However, imposing trade barriers are against the concept of free trade, popularized by developed nations.
Trading Company
Firms that are involved in international trade activities, i.e. the import and export of goods and services, are called trade companies. Since the operations of these companies span across national borders, they require international business licenses. Also, they are required to abide by the relevant trade agreements and policies set in place by both the producing and consuming countries. Regulations may define which goods are legitimate, how tariffs are to be calculated and what customs laws apply.
