The best of business widely found in developing countries are
sales of finished products.
These products, irrespective of their origin of manufacture, are
becoming a mainstay of economies of these countries.
These transactions affect GDP, international trade balance,
international politics, among others.
But when the difference in value between a country's imports and
exports, regarded as balance of trade is not favorable to you and your country
(trade deficit), there is a gap of either an opportunity or problem.
BREAKDOWN of Balance of Trade
A country that imports more goods and services than it exports has
a trade deficit. Conversely, a country exports more goods and services than it
imports has a trade surplus. The simple formula for having the upper hand
(trade surplus) is to export more than import.
Not that developing countries are not producing at all but narrow
range of primary products and few export markets cannot sustain the chuck of
raw cash huge importation is draining from their economy.
In the face of recession, cash straps, technical know-how, a vital
ingredients to achieving this giant height is fearfully edging to the cliff.
How then can the balance of trade reflect positive?
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