Chapter 21

Conclusion on Foreign Trade

January 13, 2020

As a summary, the rule in our forraign trade is that=

  • our coin is undervalued in the foreign exchange in a country where our exports are less than the value of our imports from that country
  • our coin is overvalued in the foreign exchange in a country where our exports are more than the value of our imports from that country

The foreign exchange for trade financing has a high, at par, or low rate. This is not directly affected by=

  • the central banks debasing their coins nor by adding seignorage
  • the Statute for employments by foreigners
  • the money markets and trade financing
  • fiscal or monetary policies

In reality, wealth can only be brought in or carried out through Foreign Trade depending on the over or under balance in value of imports to exports.

This balance must be the focus of the government. Other things are fruitless but also hurtful.

Comments

Avatar
No comments yet. Post a comment in the form at the bottom.

All Superphysics principles in our books

The Simplified Series

Sponsors
Superphysics