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Username: Andrew

Rating:
Guru Stars

Asked to: Apinya Kamon

Date Created: 23 Oct 2015
Category 17
Tag Financial
Question What does balanced trade mean?
Advice from Guru
Hello Andrew,

A condition in which an economy runs neither a trade surplus or a trade deficit. Under a balanced trade scheme between two countries, each country will agree to purchase as many goods as it sells to the other. A country looking to achieve balanced trade may use tariffs or barriers to trade to ensure that other countries purchase its goods.

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