What is the effect of a trade surplus


Discussion:

1. What is the effect of a trade surplus? What is the effect of a trade deficit? How do trade deficits and surpluses affect the industry in which you work? Why are trade agreements important for the various countries involved? (160 word count minimum word count)

2. How is international trade related to the U.S. standard of living as opposed to the standard of living of a small industrial nation or a developing nation? How does international trade affect a country's standard of living? What impact does it have on the way Americans live life, spend, consume, and so on.? (160 word count minimum word count)

Resource:

Colander, D. C. (2013). International Financial Policy (9th ed.). New York, NY:

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Microeconomics: What is the effect of a trade surplus
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