classical theory

In simple terms, trade deficits are paid for out of foreign exchange reserves, and may continue until such reserves are empty, at which point, the importer can no longer purchase abroad. This is likely to have exchange rate implications: a loss of value in the deficit economy’s currency relative to the surplus economy’s currency will change the relative price of tradable goods, and facilitate a return to balance or (quite commonly in historical data) an over-shooting into surplus, the other direction.

When an economy is unable to export enough physical goods to pay for its physical imports, it may be able to find funds elsewhere: Service exports, for example, are more than sufficient to pay for Hong Kong's domestic goods import. In poor countries, foreign aid may compensate, while in developed economies a capital account surplus caused by sales of assets often offsets a current-account deficit.

There are some economies where transfers from nationals working abroad contribute significantly to paying for imports. The Philippines, Bangladesh and Mexico are examples of transfer-rich economies.

A country may rebalance the trade deficit by use of quantitative easing at home. This involves a central bank printing money and making it available to other domestic financial institutions at small interest rates, which increases the money supply in the home economy. Inflation usually results, which devalues in real terms the debt owed to foreign creditors if that debt was instantiated in the home currency.

There are some economies where transfers from nationals working abroad contribute significantly to paying for imports. The Philippines, Bangladesh and Mexico are examples of transfer-rich economies.

A country may rebalance the trade deficit by use of quantitative easing at home. This involves a central bank printing money and making it available to other domestic financial institutions at small interest rates, which increases the money supply in the home economy. Inflation usually results, which devalues in real terms the debt owed to foreign creditors if that debt was instantiated in the home currency.

Classical economics refers to work done by a group of economists in the eighteenth and nineteenth centuries. They developed theories about the way markets and market economies work. The study was primarily concerned with the dynamics of economic growth. It stressed economic freedom and promoted ideas such as laissez-faire and free competition.

absolute advantage, specifically ignoring the latter. The economist Paul Craig Roberts notes that the comparative advantage principles developed by David Ricardo do not hold where the factors of production are internationally mobile. Global labor arbitrage, a phenomenon described by economist Stephen S. Roach, where one country exploits the cheap labor of another, would be a case of absolute advantage that is not mutually beneficial. In 2010, economist Ian Fletcher authored a significant work entitled, Free Trade Doesn't Work: What Should Replace It and Why, where he has supported a strategic approach to trade rather than an unconditional or unilateral approach.

economics ki itni deep study too sirf un logo ki zarorat hai joo very long term ki trading karty hun long term trader har tra ki us chez ko mad-e-nazar rakhty hain joo trading payy effect karti hoo

gee bhai hmein apne trading mein market ke sb theories ko smjhna hota he aur hm apne trading mein sahih theories ko istemal krien aur hm apne trading mein practical kam krein aur apne trading mein mhnt krein hm ko apne trading ke theories ke asane se smjh a jate he

Re: Classical theory

economics ki itni deep study too sirf un logo ki zarorat hai joo very long term ki trading karty hun long term trader har tra ki us chez ko mad-e-nazar rakhty hain joo trading payy effect karti hoo

Janab jab tak ap apni planing or experience say trading mai in nahi hogy. ap ko nahi pata chaly ga kay ap kaha kiya mistake kar rahy hain. or ap ko apny weak points ki learning or experience ko maintain karna nahi aye ga. ap ko jab tak apni kudh ki banai howi strategy or us pay learning or practice kar kay trade karain gy tu ap ko future mai apni trades sy acha result hasil karny ko mily ga or ap sath mai apni har trade confidence kay sath open kar sakty hain.