Principles of Macroeconomics / Unit 7 MAC 0616 short lesson, about 20 seconds
Level of Trade and Balance of Trade
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The idea
The level of trade and the balance of trade differ. The level is how much a country trades; the balance is whether exports exceed imports.
In practice
A country can trade very little and run a large deficit, or trade heavily and run a surplus.
Where people slip
The level depends mostly on size, geography and history: big economies trade more inside themselves.
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