
| See this is the problem. The concept of "Negative trade" is just - idiocy. We buy goods from country X cheaper than we can make them here, or perhaps they have minerals we need. We also sell some goods to country X. We also sell goods to country A,B,C,D etc, etc, etc. If we buy more goods from country X than country X buys from us, why is this an issue? We aren't providing anything of value to country X then, other than being a customer. And, in the long run, every dollar you SAVED buy buying something from country X is really a positive on the balance sheet. If it cost you $2 to produce something at home, but you can buy it from country X for a $1. You just saved the economy a $1 that it can spend on something else, or save. Trade balances are not just $ in and $ out. It's a completely unrealistic and infantile way of looking at trade. |