FIN4604 – Discussion #4

Learning Goal: I’m working on a international trade discussion question and need an explanation and answer to help me learn.

There are many real-life illustrations and applications of the concepts covered in the course. Use the discussion board to share some real-life examples related to Module 4, clarifying which topic is relevant and why.

For example, read the following article and highlight some important connections to the material covered in the module: A Brief Introduction to Trade Economics (Links to an external site.)- (WSJ, 2018)

Additional article to read: Worry About the Trade Deficit–a Bit; The danger is that the U.S. borrows too much money from foreigners. Balancing the budget would help (Links to an external site.)- (WSJ, 2018)

Or for one on recent trends (WSJ, 2022):

Fewer imports mean better growth (Links to an external site.)

Additionally, on the discussion board, you may want to describe, in your own words, the insights, doubts, queries, and serendipitous findings when presented with the content in this module and discuss how you came to understand the concept. This should not be undigested information copied from course materials or internet resources.

Please see the attachments and links below to utilize as a reference for this module:……


A Brief Introduction to Trade Economics… (Links to an external site.)
This article highlights main factors when it comes to trade. The author is critical of President Trump’s actions regarding the international trade “skirmish” with China, the European Union, Mexico, and Canada. As we learned in the module which aligns with this article; international trade is beneficial for all countries, investing more than it saves leads to a country having a trade deficit, and it is normal to see bilateral trade deficits and surpluses in multicounty trade. Another topic that this article discusses that aligns with this class is focusing on a country’s comparative advantage when manufacturing for trade. It makes the most sense for a country to specialize in goods that it has a comparative advantage for rather than trade with a country for a thing it wants but does not manufacture. In chapter 3 of our textbook, it goes deeper into how a trade deficit occurs. When there are fewer exports there is “a deficit on the trade balance or a trade deficit.” The textbook goes on to explain how in the 1980s the U.S. had persistent trade deficits, which is in contrast to some of the United States’ trading partners like China and Germany who experienced trade surplus during that time. Having a consistent imbalance in trade between counties can lead to contention. In the article, the author notes how Trump felt like the U.S. was being taken advantage of when any sort of bilateral trade deficit was present. We learn in the article and the module that it is normal to see surpluses and deficits in all areas of trade. I have collected from the module and the article that there is a lot more that goes into trade than what is seen at a surface level.
Blinder, A. S. (2018, Jul 09). A brief introduction to trade economics. Wall Street Journal Retrieved from…






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