Learning about International Business Who is at fault when a country has a balance of...

DiAMOND

New member
...trade surplus/deficit.? Okay, so I understand what exporting and importing mean as well as if a country exports more than it imports it has a trade surplus and if it imports more than it exports it has a trade deficit. What I don't understand is who is at fault when the "country" has a trade surplus/deficit.

So tell me if I got this right.

If the country has a trade surplus or deficit, it has nothing to do with what the government is doing (government spending that I keep hearing about on TV). This is the doing of the individual companies that are exporting/importing. Is this correct?
 
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