Illustrate what is relationship between a country trade
Discussion on government budget deficit
1. Illustrate what is the relationship between a country's trade deficits, its government budget deficit also it private sector deficit?
2. Illustrate what determines the value of the exchange rate?
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Suppose which there are 10 million workers in Canada also South Korea also every worker in Canada also South Korea can produce 4 cars per yr.
Illustrate what is the relationship between a country's trade deficits, its government budget deficit also it private sector deficit.
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Two countries can achieve gains from trade even if one of the countries has an absolute advantage in the production of all goods.
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