What is the trade balance in simple words. What is a balance Balance can be negative

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— balance on the i-th article of the international balance of payments (in international notation — or ).

The balance can be:

a) > 0, positive balance (positive);

b)< 0, негативное сальдо (отрицательное).

The main directions of foreign economic activity are distinguished according to the subject of foreign economic activity. Enlarged items of foreign economic activity:

3. results of creative activity

The modern conduct of international business is based on an integrated approach to the implementation of foreign economic activity.

1. International trade- international trade.

2. Technical and economic cooperation– international cooperation in the provision of services of various nature.

3. Scientific and technical cooperation is an international exchange of achievements in science and technology, author's creativity and the implementation of international research projects.

The essence and basic concepts of foreign economic activity. Classification of foreign economic categories.

Foreign economic operations- these are certain technical methods for the preparation and implementation of certain forms of international cooperation.

Modern practice of international cooperation provides for the following classification of VEO (foreign economic transactions):

- transactions for the purchase and sale of goods,

— technical and economic cooperation operations,

— scientific and technical cooperation operations.

depending from international border crossing directions participants in an international commercial transaction are:

- export operations

- import operations

- re-export operations

Re-import operations

The essence and basic concepts of foreign economic activity. Classification of foreign economic categories.

Export operations- this is an activity related to the sale and export of items of foreign economic activity abroad for the purpose of transferring ownership to foreign counterparties.

Import operations- actions related to the purchase and import of foreign economic activity for the purpose of sale on the domestic market.

Re-export operations is the sale of previously imported goods. which have not been subjected to any processing (only certain types of goods - energy resources, food) can be the subject of re-export operations.

Types of re-export operations:

1. Traditional re-export

2. Speculative re-export

3. Trade re-export

4. Infringing re-export

1. Forced re-import

2. Infringing re-import

Under international business deal understand a treaty or agreement between two or more parties regarding various forms of international cooperation.

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Economic concepts

What is a balance

Let's deal with another important economic term - the balance, which is currently used in many areas of human activity, often in a figurative sense.

Italian word saldo ("residue") denote the difference between the receipts and expenditures of the enterprise for a specific period of time. This indicator is both positive and negative.

Balance is a specific concept that arose in accounting. For some time now, it has been used in the field of foreign economic relations.

Balance in accounting

In the classical sense, the balance is the difference between the amount of receipts to the company's account and the amount of write-offs. The balance reflects the financial condition of the enterprise at a particular point in time.

In accounting, there are two types of balances:

• Debit. It is formed if the debit exceeds the credit, and is reflected in the asset column.
• Credit the balance occurs when the debit is exceeded by the credit, and is recorded in the liability column.

  If the balance is zero, the account is considered closed. There are situations when the same account has two types of balances.

By the way, more about assets and liabilities is described in this publication. We strongly recommend that you read it.

In accounting, it is not customary to consider the entire history of accounts "from the beginning of time." As a rule, we are talking about some limited time period - for example, about the last month or quarter. Therefore, there is a classification of the balance by time period. According to her, there are:

• Opening balance, reflecting the balance at the beginning of the month/year/quarter.
• Balance for the period- the total balance for the specified period.
• Final balance– balance at the end of the month/year/quarter.

  To get the closing balance, you need to add the turnover indicator from the same part of the account to the opening balance, and then subtract the turnover indicator taken from the other part of the account.

Balance of trade and balance of payments

In foreign trade operations, the balance is the difference between the amounts of exports and imports for a specified period (most often - 1 year). There are the following types of balances:

1. 1. Trade balance.
2. 2. The balance of payments.

Trade balance- the difference between the value of exported and imported goods. This indicator can have both positive and negative values. The balance of trade can be analyzed in relation to a single region, state or class of goods.

When exports exceed imports - that is, a country sells more goods abroad than it buys from its neighbors - they talk about a positive balance. It arises when a country does not need as many goods as it produces, while the world market, on the contrary, is interested in its products.

A negative balance occurs when imports outweigh exports. In most cases, this situation is unfavorable for the country. Such a balance is evidence that it cannot provide for itself on its own and becomes dependent on its neighbors. Also, the negative balance speaks of the deplorable situation of the local manufacturer: the limitation of its capabilities, the uncompetitiveness of products. A negative balance is fraught with a depreciation of the national currency.

Thus, a negative balance does not bode well for the state. True, in highly developed countries it is far from always a problem. A negative balance hinders the growth of inflation in the US, as well as in some European countries. In addition, it makes it possible to move complex industries to developing countries.

The balance of trade is the basis for the balance of payments.

Balance of payments is the difference between the amount of payments from abroad and the amount of payments abroad. When the inflow exceeds the outflow, the balance is positive. If the country gives more money than it receives, it is negative.

A negative balance does not have the best effect on the local currency: it depreciates. Therefore, there is nothing surprising in the fact that the majority of developed countries are still interested in ensuring a positive balance.

As you can see, balance is an ambiguous term. But all variations of its interpretation do not lose touch with the original understanding of the balance as the difference between income and expenses.

Finance > Economics > Positive and negative aspects of the state budget surplus

The state budget, like any other, consists of two parts: income and expenditure. Any government strives to keep both parts in balance, which in the language of economic science is called balance. But in reality, there is almost never a balance. Therefore, it is necessary to know what a deficit and surplus are, their pros and cons.

A deficit is a situation where expenses exceed income, that is, the balance sheet is obtained with a minus sign. This structure is most often observed in advanced economies and arises in connection with inflation. The deficit indicates the instability of finance and production.

In order to balance the balance, the government seeks funding in its own country and abroad, which increases the debt of the state.

If we talk about what a budget surplus is, then its definition is directly opposite to the definition of a deficit - revenues exceed expenses. What does the word budget surplus mean? This is a positive balance. There is only one plus in such a situation - the state is able to fulfill all its obligations.

What is a state budget surplus, why is it good or bad? If there is a primary surplus in the state budget, then loans are deducted from income, and funds spent on servicing debts are deducted from expenses. In the secondary form, revenues cover all expenses, including those required to service the state's debts.

What's wrong with a budget surplus? There are many more cons than pros:

1. excess funds are simply stored, which leads to their depreciation;
2. the capabilities of manufacturing enterprises are decreasing, that is, finances are practically taken away from the regions;
3. the effectiveness of the work of authorities in the regions is reduced.

Legislators in many countries are well aware of what a budget surplus means, and adopt legal regulations prohibiting such a structure of the state budget. What is a budget surplus in times of austerity? In this case, there is nothing positive, since the state spends an insufficient amount of funds to finance material and financial assets and pay debts.

The exceptions are situations where large revenues are due to economical, rational use of funds and are accompanied by sufficient funding on the ground. The state gets the opportunity to create a stabilization fund, which is subsequently spent on the social sphere.

The balance of exports and imports.

Export - the export of domestically produced goods from the country, as well as the re-export of goods. Re-exported goods are goods that are brought into a country and then exported abroad without processing. Accounting for the export of goods is carried out at FOB or Franco-border prices of the exporting country.

Import is the entry of goods into a country. Imports include imported goods intended for consumption in the country's economy, goods imported into the territory of the state in accordance with the re-export regime, and goods purchased for domestic organizations abroad for consumption locally.

The balance is the difference between exports and imports. A positive balance - exports exceed imports, a negative balance (a minus sign is put) - imports exceed exports.

national savings(gross and net) is the part of gross national disposable income that is not included in final consumption. Gross national saving (GNS) is equal to the sum of gross savings of all sectors of the economy:

Net national saving (NNS) is equal to the difference between GNS and consumption of fixed capital:

CHNS \u003d VNS - POK.

Net lending and net borrowing.

Net lending - the excess or deficit of funding sources compared to the cost of acquiring non-financial assets; at the level of the national economy, it shows the amount of resources that a given country makes available to the rest of the world.

Net lending is used as a balancing item in the account capital.

Companies must comply with all other obligations before there is any consideration to lend out funds. Net lending in the economy as a whole is the sum of net lending or borrowing from institutional sectors. It matches, the net amount of resources that the overall economy has to supply the rest of the world.

Net borrowing is the amount of resources a country receives from the main world.

national wealth.

National wealth is a set of material resources, accumulated products of past labor and natural resources that are taken into account and involved in the economic turnover, which society has at a certain point in time.

National wealth statistics solve problems. associated with the development of a system of indicators and the justification of the methodology for their calculation both for the entire wealth and for its individual elements, as well as the tasks of the practical organization of statistical observation and processing of the information received at different levels in accordance with the accepted system of indicators and the methodology for their calculation. The indicator system of national wealth statistics used in the analysis includes the following main characteristics:

1) the presence (volume) and structure of wealth;

2) reproduction of its most important parts;

3) the dynamics of all wealth and its constituent elements;

4) distribution of wealth on the territory of the country;

The foreign trade balance is an important element of the end use of the gross domestic product and is defined as the difference between exports and imports. If the balance is positive, then net exports take place.

The authors believe that "Balance is the difference between receipts and expenditures for a certain period of time." 7 It characterizes foreign trade relations, which consider the amount of exports and imports for a certain period. The balance is divided into subspecies:

The trade balance is the difference between the value of exports and imports.

It is positive and negative. In world practice, it is generally accepted that the negative balance has a bad trend. This is expressed in the excessive import of foreign goods, infringement of the interests of the domestic producer.

The balance of payments is the difference between receipts from abroad and payments abroad. It is also divided into positive and negative.

_______________________

7 Zhuravleva G.P. Economic theory: textbook. Publishing house: Education. 2011. 919 p.

net national product

The scientific definition has the following interpretation: "Net national product - gross national product minus annual depreciation." 8 This criterion shows the total annual production of goods and services that were produced and provided in all sectors of the country's national economy.

The value is the total annual output that the national economy can consume without impairing the production capacity of the following years. The formula to calculate is as follows, NDP is gross national product and A is depreciation.

NNP=GNP-A.

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8 Nikolaeva I.P. Macroeconomics: textbook. –SPb.

Practical Provisions

Price level measurement

This criterion must be known in order to know:

1. Establish the presence of inflation and deflation in society.

2. Comparison of the gross national product by years.

The most famous price indices are:

· Consumer price index.

· Producer price index.

· Index for export products.

· Price index for gross national product.

· Deflator - used to adjust the monetary volume of the gross national product, taking into account changes in prices.

The classification of the gross national product distinguishes the real and nominal form. Nominal GNP characterizes the volume of output in a given year, while real GNP measures the volume of output in a given year, expressed in base year prices.

Since rising prices have now become a fairly common phenomenon for citizens, the gross national product is lower than real GNP. However, in the years following the base year, the nominal gross domestic product exceeds the real GNP. That is why, the transition from nominal GNP to real GNP in the period preceding the base period, we increase it. This process is called inflation. And if we make the transition from nominal GNP to real GNP in the year following the base year, we reduce it. Defile applies here.

Price index, Paasche price index, Lispers index, Fisher index

In the conditions of the modern economy, an important place among the indices of qualitative indicators was given to the price index, which is an indicator of the dynamics of the price level.

With the help of the consumer price index, the dynamics of prices for industrial and non-industrial consumption goods is assessed. It reflects the dynamics of final consumption prices, measures the overall change in the cost of a fixed set of consumer goods and services, and is also one of the main indicators characterizing the level of inflation. It is used when adjusting the minimum amount of work, calculating tax rates, and more.

Paasche index

In 1874, the German economist G. Paasche proposed an aggregate price index with reporting weights. The Paasche aggregate price index formula is defined as follows:

Where the numerator is the actual cost of production of the reporting period.

The denominator is the conditional value of goods sold in the reporting period at basic prices.

The Paasche price index shows how many times the average price level increased or decreased for the mass of goods sold in the reporting period, or how many percent is its growth in the reporting period compared to the base periods, i.e. shows how much goods in the reporting period period became more expensive (cheaper) than in the base period.

In 1864, the German economist E. Laspeyres proposed an index reflecting price changes and is based on the products of the base period.

Laspeyres index

The Laspeyres aggregate price index formula is calculated as the ratio:

This index shows how much prices have changed in the reporting period compared to the base period, but for products that were sold in the base period, and the savings that could be obtained from price changes. This indicator also shows how many times the price of goods in the base period has risen or fallen in price as a result of changes in prices for them in the reporting period.

If not an exact definition, then an understanding of what a balance is, most of us have. An Italian word bearing the meaning of the words "difference", "remainder". A well-established association with accounting allows us to consider the concept in its context as the difference between the amounts recorded on debit and credit. The balance is final, initial - first of all, it is they who are discussed when the balance is mentioned. Now we will dwell in more detail on the final.

Final balance - what is it?

The ending balance is the residual value at the end of a certain period of time. Despite the clarification of the format “can the final balance be negative?”, It is known from the general accounting course that the balance cannot be negative. The meaning of debt may be implied. But in no case is it written as a negative value - only a positive one. Even in the case of an exotic score of 60 - active-passive. Its final balance is debit and credit, which, nevertheless, in each of the cases is written as a positive value of the numbers.

How to find the closing balance?

There is a specificity of its location in terms of the passivity or activity of the account. Therefore, we will consider two options.

Accounts of the active order reflect the change in households. funds have a debit balance (initial and final). Their debit turnover is usually a display of incoming amounts, credit - retired.

The formula for calculating the final balance looks like this.

From the end = From the beginning. + Deb. Obor. - Credit. Obor.

It can be seen that the final balance of the active account, as stated earlier, is recorded in the debit zone of the table in question.

Sources of funds are displayed on passive property accounts.

Balance(from it. saldo - calculation, retribution, balance; English amount of balance, net balance, account balance) -

1. The difference between financial receipts and expenditures for a certain period of time.
2. The difference between cost and country (balance).
3. The difference between foreign payments and receipts (balance).
4. In exchange operations, the debt of a client or a brokerage firm to a client.

A positive, active balance means an excess of income over expenses, and a negative one - vice versa.

The term balance is most widely used in accounting. Balance - the balance of the account of economic assets or sources of their formation. In active accounts, the balance can only be debit and show the balance of economic funds available on a particular account. In passive accounts, the balance is only credit and shows the source of the formation of economic funds. In active-passive accounts, the balance can be both debit and credit, or both debit and credit (such a balance is called expanded). The debit balance of the account is reflected in the asset, and the credit balance in the liability. In the accounts, the balance is formed both in monetary and in-kind terms. The monetary value of the balance on all accounts of the specific analytical accounting should be equal to the balance of this synthetic account.

The balance is determined as of the first day of each reporting period. The balance on the first day of the reporting period is called primary, and on its last number - final. The closing balance of one reporting period is the opening balance for the next reporting period. To determine the ending balance in active accounts, the turnovers on the debit of the account are added to the opening debit balance and the turnovers on its credit are subtracted. In passive accounts, credit turnover is added to the initial credit balance and debit turnover is subtracted. In active-passive accounts, the final balance is determined by the debit and credit of the account based on the summation of the final balances for each position of analytical accounting. To reflect the balance of the active-passive account in the balance sheet, the rolled-up balance is determined as the difference between the debit and credit balances.

When characterizing foreign trade relations, they often consider the sum of exports and imports for a period, for example, for a year. At the same time, the balance of trade and the balance of payments are distinguished.

Trade balance- the difference between the value of exports and imports. A positive trade balance means an excess of exports over imports (a country sells more than it buys). A negative trade balance is the excess of imports over exports (a country buys more than it sells). In world practice, it is generally accepted that a negative balance is a bad trend, since excessive imports contribute to flooding the market with imported goods, infringing on the interests of domestic producers. in its recommendations and conditions for issuing loans indicates the need and usefulness for the economy to have a positive trade balance.

Balance of payments- the difference between receipts from abroad and payments abroad. A positive balance of payments means the excess of all payments coming into the country from abroad over payments from this country to another. Negative balance of payments - the excess of payments from the country over payments to the country. Typically, international payments are made in the most convertible currency, such as US dollars or euros. The negative balance of payments is gradually decreasing

in Italian balance is the balance or remainder. This term refers to the difference between total cash receipts and total cash outflows in a given time period. If we talk about the positioning of this term in accounting, then this will be the difference between the total amounts of credit and debit turnovers.

Types of balance

The balance can be opening or closing. In this case, the debit balance is positive, and the credit balance is negative.

To determine the closing balance, it is added to the credit or debit turnover. If we take into account international trade and payment settlements, then the balance will be understood as the difference in the total amounts between imports and exports, as well as between the receipts of financial resources in a particular country and payments abroad.

Debit and credit balance

If the debit is greater than the credit, then we are talking about a debit balance. It is able to reflect the state of affairs of a particular type of economic means in a specific time period. The debit balance is shown in the asset balance.

In the credit balance, the credit will be slightly larger than the debit. It can reflect the state of various sources of economic funds. In this case, the credit balance is shown not in the asset, but in the liabilities side of the balance sheet.

Provided that the account has no balance, the balance indicator will be equivalent to zero. This account will be closed. In accounting practice, there have been cases when accounts simultaneously have a credit and debit balance.

If we take into account the practical part of the analysis of accounting, then not all of its history falls under the study, but only the time period of interest. In this context, the following types of balances can be distinguished:

• opening balance;
• debit turnover for the period;
• credit turnover for the period;
• balance for the period;
• outgoing balance.

Primary or opening balance Shows the account balance at the start of the transaction. The basis for the calculation are the operations that were carried out earlier.

final or closing balance determines the account balance at the end of the specified period. Most often, the final result of the calculation is the arithmetic sum of the opening balance and turnover for the entire period.

Basis for calculation debit and credit turnover are operations carried out in a certain time period.

Balance for the period is the result of operations at a particular time.

Foreign trade relations

If we talk about foreign trade relations, then here quite often they consider the amount of exports and imports for a specified time period. The resulting difference between the total value of imports and exports is called the trade balance. In this case, the balance can be negative or positive.

• In the first case, there is an excess of imports over exports.
• A positive balance will determine the excess of exports over imports, which essentially means a situation in which the country sells more goods, rather than buys them.

There is also a concept called the balance of payments. This is the name of the difference between foreign receipts and payments outside a single country. The balance of payments can also be positive or negative.

• In the first case, the excess of all payments that enter the country from abroad over payments that are made by this country is determined.
• With a negative balance of payments, there is an excess of making payments over receiving them.

International payments are most often made in the most convertible currency.

If not an exact definition, then an understanding of what a balance is, most of us have. An Italian word bearing the meaning of the words "difference", "remainder". A well-established association with accounting allows us to consider the concept in its context as the difference between the amounts recorded on debit and credit. The balance is final, initial - first of all, it is they who are discussed when the balance is mentioned. Now we will dwell in more detail on the final.

Final balance - what is it?

The ending balance is the residual value at the end of a certain period of time. Despite the clarification of the format “can the final balance be negative?”, It is known from the general accounting course that the balance cannot be negative. The meaning of debt may be implied. But in no case is it written as a negative value - only a positive one. Even in the case of an exotic score of 60 - active-passive. Its final balance is debit and credit, which, nevertheless, in each of the cases is written as a positive value of the numbers.

How to find the closing balance?

There is a specificity of its location in terms of the passivity or activity of the account. Therefore, we will consider two options.

Accounts of the active order reflect the change in households. funds have a debit balance (initial and final). Their debit turnover is usually a display of incoming amounts, credit - retired.

The formula for calculating the final balance looks like this.

From the end = From the beginning. + Deb. Obor. - Credit. Obor.

It can be seen that the final balance of the active account, as stated earlier, is recorded in the debit zone of the table in question.

Sources of funds are displayed on passive property accounts.