Why did China restrict trade with Europe? For China, Europeans were allowed to conduct trade in enclaves, or walled-off portions of trade cities. The imperial ministers had much the same reasons as their counterparts in Japan for restricting foreign trade: religion and technology would disrupt the society and ultimately the government. What did Europe trade with China? In 2016, the…
Category: Interesting
When can you trade in a leased car
Can you trade in a car you just leased? You can also take your car to any other dealer, not just the one where you arranged the lease, and let the dealer buy the car at the trade-in price. The dealer will pay the leasing company what you owe and give you a check for the equity. What happens if…
How to calculate total gains from trade
How are gains from trade measured? The total gain from trade can be measured by the movement from E to C1. This movement takes place in two steps—the movement from E to C is the gain from exchange and the movement from C to C1 is the gain from specialization. Is it possible to estimate the gains from trade? Yes…
What is a trade imbalance
What is meant by trade imbalance? A country that imports more goods and services than it exports in terms of value has a trade deficit. Conversely, a country that exports more goods and services than it imports has a trade surplus. What causes trade imbalance? What causes it? The fundamental cause of a trade deficit is an imbalance between a…
What is balance of trade deficit
What is balance of payment deficit? A balance of payments deficit means the country imports more goods, services, and capital than they export. It must borrow from other countries to pay for its imports. It’s like taking out a school loan to pay for education. Your expected higher future salary is worth the investment. What does a trade deficit really…