Trace balance The trade balance is an item in the current account of the international payments balance. The trade balance recorded the changes in exports and imports of a country in a given period ( quarter or year ) and the difference between them. The trade balance is positive , it is called trade surplus. The trade balance is negative , the trade deficit occurs
Macroeconomic Topic: TRADE BALANCE OCEAN TEAM 1.Phan Viet Hang Phan Thi Thao Duong Thi Trang Tran Quoc Tuan Trace balance and trade deficit Trace balance The trade balance is an item in the current account of the international payments balance The trade balance recorded the changes in exports and imports of a country in a given period ( quarter or year ) and the difference between them The trade balance is positive , it is called trade surplus The trade balance is negative , the trade deficit occurs Factors affecting the trade balance Export Import Exchange rate The impact of capital flows The impact of income The trade policy and international development History of the trade balance of Vietnam Biểu đồ cán cân thương mại 2000-2010 Xuất Nhập CCTM History of the trade balance of Vietnam Biểu đồ cán cân thương mại 2011-2015 Xuất Nhập CCTM History of the trade balance of Vietnam Exports increased by $ 57.788 billion Import increased by $ 69.204 billion the trade balance was always in deficit In 2000-2002 , the trade balance had an average deficit of more than $ billion ; the period 2003-2006 the deficit increased to an annual average of about $ billion.In 2007 -2010 , the average deficit was about $14.4 billion per year Especially in 2008 , the deficit reached of $18.029 billion In years , Vietnam 's economy has gone through ups and downs due to the impact of the global financial crisis as well as derived from the internal economy : high growth , but not stable ; High inflation and especially the state of the current account balance deficit stems from the trade balance deficit is increasing import and export situation between Vietnam and China Import and export situation: Up to now , China is the largest trading partner of Vietnam Evidence that if imports from China accounted for 8.9 % of total imports in 2002 , then by 2011 , this ratio was 23.3 % and increased to 27 % in 2013 While that, exports from Vietnam to China almost like not change Though Vietnam trade surplus to China in 2000 , but in the next year , Vietnam continued trade deficit and the deficit is more and more larger The value of imports approximately 2- times the value of exports and there are no signs reduced import and export situation between Vietnam and China Trade deficit with China is largest in comparing to other countries The record number is $32 billion in 2015 import and export situation between Vietnam and China The cause of the trade deficit There are main cause : Import increased faster than export in serveral years, trade deficit is more and more larger as a result Vietnam exported Crude goods while we only imported valuable goods such as machine , equipment, gasoline, So, trade deficit is obvious Factors nco and nx NX (net exports) : the difference between the value of exports and imports of a country NX = export – import NX is positive: trade surplus NX is negative : trade deficit Factors nco and nx NCO ( net outflows ) : refers to the difference between the purchase of foreign assets by domestic residents and the purchase of country assets by foreign residents NCO = Buying foreign assets of domestic residents - Buying country assets of foreign residents When NCO is positive: Capital in this case is called going out of the country When NCO is negative : Capital in this case is called coming in the country the impact of the trade deficit for the exchange rate The explanation based on supply and demand of foreign currency: Trade deficit : demand of foreign currency is greater supply of foreign currency exchange rate decreases Trade surplus : demand of foreign currency is lower supply of foreign currency exchange rate increases ... History of the trade balance of Vietnam Biểu đồ cán cân thương mại 2000-2010 Xuất Nhập CCTM History of the trade balance of Vietnam Biểu đồ cán cân thương mại 2011-2015 Xuất Nhập CCTM History of the