FOREIGN TRADE BALANCE - the ratio of the value of goods imported into the country and exported from the country for a certain period of time. If you stop-
Foreign trade balance - foreign currency receipts from exports and payments for imports of goods.
Balance of services and non-commercial payments - payments and receipts for transport and insurance operations, postal and telegraph, telephone communications, commission transactions, tourism, cultural exchange, consumer transfers (wages, inheritance, scholarships, pensions), for the maintenance of diplomatic and trade missions, interest and dividends on investments, payments for licenses, use of inventions and military expenditures abroad. In the statistics of capitalist countries, these articles, which differ in form and economic content, are combined into the general concept of “invisible operations”. The foreign trade balance and the balance of non-commercial payment services form the current PAYMENT BALANCE.
FOREIGN TRADE BALANCE - the ratio of the value of goods exported and imported into the country for a certain period of time (month, quarter, year). If the cost of exported goods exceeds the cost of imported goods, B. c. is considered active; if the relationship is reversed, it is considered passive. The difference between the cost of exports and imports of goods is called the balance, the value of which depends on fluctuations in commodity prices, exchange rates, etc. Liability B. v. (deficit) adversely affects the state of the country’s economy and its foreign economic situation. Deficiency of B. v. indicates low competitiveness national goods, imperfect structure of exports and imports, worsening terms of trade for the country, unfavorable fluctuations in economic conditions, etc.
Active foreign trade balance 43
Foreign trade balance passive 43
National security is usually viewed in two aspects - external and internal. In industrial democratic society The external aspect is based on the protection of society from possible attacks from other states, the protection of the country’s interests in foreign economic relations (for example, the desire to have a stable national currency and a positive foreign trade balance). The internal aspect is based on the fight against crime and corruption, and the protection of the democratic rights of citizens. Main actor in both aspects it is the state.
The significance of these connections will increase even more if the next step is taken - organizing the import into Japan of products manufactured with the participation of Japanese firms abroad. This will be the beginning of the final stage (export of technology, import of products). Import of finished products manufactured using licensed Japanese technology will help balance Japan's foreign trade balance and will be fully consistent with the course of an open economy.
A sharp dissonance against the background of an increase in the balance of payments and foreign trade of OPEC members is the sharp deterioration in the foreign economic situation of the liberated countries - oil importers that are not members of OPEC - As a result of the sudden increase in oil prices in 1979-1980. payments from these countries for imported oil almost doubled the level of 1978 and reached a huge amount in 1980 - $50 billion.
Invisible operations combine articles of different form and economic content. Thus, transport operations include freight, transportation by rail, air and road, as well as those related to the operation of pipelines. The overwhelming majority of foreign trade cargo from developing countries is transported by ships and at the tariffs of Western liner companies (conferences). These tariffs are often discriminatory. Developing countries, which account for more than 50% of cargo loaded and about 20% of cargo unloaded in global maritime trade, own less than 15% of the world's merchant fleet tonnage. As freight volumes increase, freight payments are placing a significant burden on balances of payments and are currently approximately three times their freight revenues, representing about 30% of total payments on invisible transactions. Even for those countries that have their own fleet (Egypt, India, UAE, Iran, etc.), the costs of freighting foreign tonnage reach up to 30-35% of the balance of payments deficit. This situation is extremely aggravated during periods of military conflicts and political tension.
When considering the article Insurance, it is necessary to keep in mind that practically not a single foreign trade transaction can be done without it. Developing countries' insurance payments exceed $4 billion a year, worsening their balance of payments. This figure is approximate, since there are no official aggregate data on payments for international insurance and reinsurance.
As part of the WTO agreements, there are strict sanctions against resident exporters who do not return foreign exchange earnings to the country, violate the terms of currency barter exchange and customs regime. Increasing cases of application of anti-dumping procedures by the United States and other countries in relation to Russian goods and services significantly narrow the foreign trade space for Russian producers, and the loss of foreign markets in the context of a high share of imports in the domestic market leads to a negative balance of payments and the collapse of entire sectors of the Russian economy .
In the first half of 1994, there was a reversal in the trend of trade balance dynamics; growth gave way to decline. This trend was not completely stopped in the following years. With a positive foreign trade balance in the first half of 1996 amounting to $11.3 billion, the settlement (payment) balance remained negative due to significant government expenses for servicing and repaying previously taken debt obligations and obtaining new loans. As a result, the country found itself in a state of external debt crisis. In 1997, the active balance of current transactions in relations with foreign countries decreased by almost a third and amounted to 4.7 billion dollars. Foreign trade turnover for the first half of 1997 amounted to 72.1 billion dollars. and decreased compared to the level of the first half of 1996 by 5%. The fall in foreign trade turnover, which occurred for the first time in last years, was due to a reduction in both exports of goods (by 4%) and their imports (by 6%).
When there is no other data indicating physical ownership of goods and allowing one to establish the moment of transfer of ownership of goods, foreign trade statistics data reflecting the physical movement of goods can be used. In the case of a transfer of real resources accompanied by the provision of a loan, the accounting of both transactions in the balance of payments should occur at the time of the actual completion of each of them.
Form a long-term trend towards a decrease in the positive balance of foreign trade.
Behind the façade of the apparent prosperity of the trade balance are hidden phenomena and trends that little correspond to the once made promises of the authorities to achieve a restructuring of Russia's foreign trade policy in such a way as to ensure diversification of export potential, faster growth of exports of high-tech products, development of production competitive on the world market, transition from critical , supporting imports to imports, stimulating an increase in the technical level and quality of domestic products.196 Failure to do this creates an immediate threat to Russia’s position already in geopolitical terms.
FOREIGN TRADE BALANCE (foreign 1r ul balan e) - the ratio of the value of goods exported and imported into the country for a certain period of time (month, quarter, year). If the cost of exported goods exceeds the cost of imported goods, B.v. is considered active; if the relationship is reversed, it is considered passive. The difference between the value of exports and imports of goods is called balance (see), the value of which depends on fluctuations in commodity prices,
Trade balance– this is a certain part of the payment payment, which characterizes the state’s trade relations with other countries. Its components include import and export of goods. Thus, the balance of trade represents the difference between the volumes of imports and exports of various goods. If there is a significant predominance of exports over imports, this indicates that there is a fairly large influx of foreign currency into the country, as a result of which the exchange rate of the national currency begins to increase. Likewise, if the trade balance shows that there is too much dominance of imports over exports, then this indicates that the country's goods have a rather low competitiveness abroad. This information is published every month, but the foreign exchange market often reacts poorly to this information.
What it is?
As mentioned above, a country’s trade balance is the ratio of the value of imports and exports of certain products over a separate period of time. The foreign trade balance, in parallel with actually paid contracts, also includes those transactions that were carried out on credit. When contracts are actually paid, the foreign trade balance represents a separate element of the country's balance of payments.
What does it show?
Russia's trade balance is one of the most important indicators reflecting how effectively a country participates in international trade, as a result of which it represents separate part balance of payments. This balance is the ratio between the sum of the prices of goods that were exported abroad, as well as the sum of the costs of products that were imported into the country. Initially carried out detailed analysis exports because they directly affect how much the economy grows.
Imports, in turn, determine the demand for goods directly within the country, and if imports grow, then the formation of inventories is determined, which may indicate a possible further slow growth in sales. The trade balance formula may show different results because they are highly dependent on the exchange rate that adjusts the nominal amount of import receipts in the domestic currency.
Why is it needed?
In the vast majority of cases, the trade balance formula is calculated for the year and includes the cost of all goods that were purchased or sold on instant payment terms, supplied on credit or even absolutely free of charge in the form of government assistance or a gift. It is worth noting that, minus the latter indicators, the active trade balance is entered directly into the balance of payments.
The active part of this balance reflects the export of products that were produced, mined or grown in the country, as well as all kinds of goods that were previously imported into the country from abroad and subsequently underwent some processing. The passive part includes the import of foreign products for the purpose of domestic consumption or processing with further export. The difference between the price of imports and exports is the trade balance. A positive trade balance is a situation in which the price of exports is greater than the price of imports, otherwise the balance is called a deficit. If the passive and active parts of the trade balance are equal, then it is called “net balance”.
How is it composed?
The compilation of the trade balance is carried out by the authorized financial statistical and foreign trade authorities of each individual country. It is worth noting that if the trade balance is considered trading enterprise, then in in this case it is determined by the department of relevant specialists.
These calculations are carried out in order to determine the foreign economic position of a company or country, to clarify the level of competitiveness of its own products, as well as the purchasing power of the national currency used. The technology for calculating the cost of imports and exports in different countries differs in its own characteristics, and therefore it is quite difficult to compare the corresponding indicators.
The UN Statistical Commission recommends that all countries use a single technology in relation to the system itself, as well as the basis for recording price indicators in their own foreign trade. In particular, when forming a trade balance, it is necessary to take into account the price of all imported goods, based on an FOB basis, that is, the price of an imported product includes its price at the border or at various exit ports of the selling country, as well as all kinds of expenses associated with insurance or delivery of products to the border of the consumer country. In this case, the price of the exported goods bears all the seller’s expenses associated with the delivery of the goods to the output port or to its own border, including all kinds of duties and other similar fees.
The economy directly depends on what the trade balance will be. In this regard, in the vast majority of cases, when compiling a trade balance, countries fully comply with the technology recommended by the UN Statistical Commission. Approximately 30 countries record import and export prices based on FOB.
Trade balance of capitalist countries
The balance sheet of capitalist countries includes the spontaneous nature of economic development, the aggravation of the situation on the existing sales market, inflation, the currency crisis and many other processes. Uneven political and economic development capitalism is reflected in a change in the balance of power between several competitors, as well as in a significant intensification of the trade war between countries or customs and economic groups of various imperialist states.
In the current practice of capitalist countries, such technologies for equalizing the trade balance as the introduction of customs duties, quantitative restrictions on the import of certain products, all kinds of credit and tax benefits, devaluation, revaluation, financing exports from the budget, introducing multiple exchange rates, as well as a number of other methods.
How does this reflect?
If the whole world buys the export goods of a certain country, but buyers in the domestic market also prefer to buy domestic goods, then in this case we can say that the economy of this country is in good condition. At the same time, the trade deficit shows that the country's goods are not the most competitive, and its residents must take certain actions in order to protect their own standard of living.
However, such an analysis is fair if the reason for changes in the trade balance was a decrease or increase in demand for goods of this state, but it is worth noting the fact that in fact this indicator can be influenced by many other reasons , including also a good investment climate, which generates an influx of investment into the country, and consequently, an increase in purchases of equipment abroad, which ultimately leads to a trade deficit, despite the fact that the state of the economy of a given state is not getting worse.
Current account balance
The current account balance can be called the most informative, since it includes absolutely all asset flows, including official and private, which are associated with the movement of all kinds of services and goods. A positive current account balance indicates that the country's credit has higher rates than the debit for the movement of services and goods, and also demonstrates the volume of obligations of non-residents relative to residents.
In other words, if there is a positive balance, this indicates that this country is a net investor relative to other countries. At the same time, if there is a current account deficit, this indicates that this state is becoming a net debtor over time and must pay for additional net imports of products.
How important is it?
In the process of development of the economic school of mercantilists, equilibrium was established in accordance with the terms of the balance on the current account, while this balance did not take into account capital movements, as well as all kinds of changes that occurred in the gold and foreign exchange reserves of a particular country. Thus, the main goal economic policy in this case, it was to maximize the current account surplus in order to ensure the accumulation of gold in the country. Today, it is already obvious that such a statement is not without foundation, because it is the state of the active account that has a direct impact on the real income of the state, as well as the standard of living of the people living in it.
Thus, in the process of integrating the active account into current system national accounts, it can be determined that the occurrence of a deficit in this account indicates that the country’s expenses significantly exceed its income, which cannot be financed in any other way except through the influx of foreign borrowed capital for a long period.
Features of a closed economic system
In a closed economic system, savings should have the same value as investment, while in an open economy, these indicators may differ depending on the state of the current account. If there is an excess of imports over exports, then this implies that investment has a higher value compared to saving in the amount of the deficit, which cannot be the case if there is no influx of long-term foreign capital aimed at financing the deficit.
Possible risks
However, there is a danger of maintaining the current account deficit through long-term capital inflows for several reasons. First of all, this concerns the high liquidity of the instruments used to service this capital influx. The country's economy is highly dependent on the state of global monetary and financial markets, which are extremely susceptible to various speculative price fluctuations.
Foreign trade balance of the country- the ratio of the value of goods exported by any country or group of countries and the value of goods imported by them for a certain period of time, for example, for a year, quarter, month. The foreign trade balance includes goods transactions actually paid for and carried out on credit. The foreign trade balance is compiled for individual countries and groups of states.
Negative balance
A negative trade balance in countries such as the USA and Great Britain makes it possible to curb inflation and maintain a high standard of living by transferring labor-intensive production outside the state [ ] . Such countries have capital-intensive and high-tech sectors of the economy, which attract significant amounts of capital from around the world in the form of portfolio or direct investment. However, due to the lack of competitiveness of export industries, these countries are forced to cover the bulk of the trade deficit by issuing private and government debt instruments [ ] . In the United States, the trade deficit, according to the Bureau of Economic Analysis, was $836 billion in 2006.
In underdeveloped countries, a negative trade balance indicates the uncompetitiveness of export sectors of the economy, which often leads to devaluation (depreciation) Money such countries due to the fact that they cannot pay for import purchases [
Trade balance– trade balance: the difference between receipts and expenses from a country’s foreign trade transactions. A positive trade balance indicates that a country's exports exceed its imports. Accordingly, a negative balance shows the inverse ratio of the quantities of imported and exported goods.
In simple terms, trade surplus is the difference between a country's exports and imports.
What is a trade surplus?
Positive trade balance characterized by the predominance of exports of goods and services over imports and is an indicator high level demand for the country's goods on the world market, as well as sometimes about an oversupply of manufactured goods.
What is a negative trade balance?
Negative trade balance indicates widespread consumption of foreign goods. It is generally accepted that a positive balance is better than a negative balance, because in this case, the local manufacturer is supported, and therefore the country’s economy. A negative balance of foreign trade transactions can indicate an underdeveloped and uncompetitive economy. Most often, this situation leads to, which happens as a result of the lack of ability to pay for import transactions.
But this phenomenon also has positive side, namely the ability to curb inflation and maintain a high standard of living. The United States of America and Great Britain can serve as such examples.
Why does a Forex trader need a trade balance?
The trade balance indicator is one of the few indicators that can have not an indirect, but a direct, direct impact on fluctuations. This is explained as follows: the trade balance reflects constant movement financial resources between partner countries associated with the provision of certain goods and services under the agreement.
It is worth noting the existence of one paradox, which is that the reaction of the national currency exchange rate to the trade balance report is minimal, and all due to structural and technical reasons. That is, the report is characterized by some delay. The reason for this is the time required for its preparation and execution. Therefore, exchange rate dynamics very rarely reflect the true flow of values and material resources between trading partners.
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The foreign trade balance is the ratio of the cost of import and export of products for a particular time period. Along with actually paid transactions, transactions carried out on credit are also included in the foreign trade balance. In case of actually paid commodity transactions, the foreign trade balance is part of the state's balance of payments. When transactions are carried out on credit, the foreign trade balance is included in the country's settlement balance.
The foreign trade balance is formed both for individual countries and for groups of countries. The foreign trade balance is called active if the cost of exported goods exceeds the cost of imported ones. In the case when the cost of imported goods exceeds the cost of exported goods, the foreign trade balance is passive.
A positive foreign trade balance indicates the demand for goods of a particular country in world markets or that the state does not consume all the goods it produces. Negative balance indicates that in addition to its own goods, foreign goods are also consumed in the country.
The difference between the value of imported goods and exported products is called the balance. Trade balance - annual figure (in some cases - quarterly) foreign trade transactions countries.
A positive balance (or a decrease in the negative balance) is a favorable factor for the growth of the national currency.
The foreign trade balance is one of the few indicators that has not an indirect, but a direct impact on the exchange rate, since it reflects the movement of funds between countries for goods and services provided. However, the paradox is that the reaction of the exchange rate to this report is minimal due to technical and structural reasons, namely: the report is too late from the time when the real movement of values occurred, in addition, the movement of capital due to trade relations is several times less capital movement associated with the operation of credit and stock markets, and the cycles of these two flows, as a rule, do not coincide. As the foreign trade deficit grows, the demand for foreign currency increases and the exchange rate of the local currency falls. The foreign trade balance is influenced by indicators of domestic demand, since they determine the dynamics of imports, as well as the exchange rate itself, which adjusts the nominal value of import receipts in local currency.
For foreign exchange markets, the overall balance is a key indicator. At the beginning, exports are analyzed, because it has a direct impact on the value of growth in the economy. Imports reflect the demand for goods in a country. The increase in imports reflects the formation of inventories, which may indicate a possible subsequent slow increase in sales.
Subsequently, specific product groups are analyzed. There are several special exports and imports that can significantly affect the trade balance. For example, oil for imports (especially the increase in its price) and aviation for exports. Depending on the commodity category, a widening deficit created by a small drop in exports could push fixed income markets in either direction. Unlike other sectors of the economy, there is no consistent relationship between foreign trade balance and phases of the business cycle. During downturns in net exports, other indicators can either improve or worsen. The main reason is the different synchronization of business cycles at home and abroad, as well as the duration of cycle changes at home and abroad. Exports show consistent growth during the expansion phase of a country's business cycles, but this relationship again breaks down during recessions and recoveries.