Balance of trades' understated effects upon their nation's GDPs.

S

Supposn

Verified User
Balances of trade understate their effects upon their nation's domestic production.

Nation's balances of international trade are determined by the total net prices of their exports which increase, and imports which reduce their nation's gross domestic products, (GDPs).

We know it's not unusual for resonance to occur among a nation's enterprises consequentially effecting their nation's total domestic production, (GDP).

An example of such resonance would be a factory's units of production affecting sales volumes, (i.e. units of production) for some other enterprises would be a pizza shop nearby a factory. Both the factory and the pizza shop contribute to their nation's domestic production. When more or fewer factory workers are employed, both enterprises' production, (i.e. their sales volumes) are more or less affected; but they do not affect each others prices per unit.

Both enterprises contribute to their nation's domestic production.
Any portions of the factory's production that's exported is accounted for within their nation's balance of international trade.
The pizza shops products are not globally traded items. Thus, no portion of the shop's increased or reduced production due to their nation's international trade is reflected within their nation's balance of trade.

Nations' annual imports crowd their own domestic products out of their marketplaces and thus reduced their nation's domestic productions. Just as positive trade balances contributed to surplus trade nations' GDPs, negative trade balances reduced trade deficit nations' GDPs, and their balances of trade to some extents understated their effects upon their nation's domestic production.

This leverage due to resonating production is the greater of trade balances understating their effects upon their nation's domestic production.

Respectfully, Supposn
 
We know it's not unusual for government or quasi-government entities such as universities, or utility companies providing some local producer with goods, services, or other considerations at lesser than market, or at no costs in order to promote their local economies.

Producers benefits from public infrastructures or other considerations at lesser than market costs are usually reflected as lower prices for those producers' products; regardless of this, all domestically produced goods and service products do contribute to their nation's GDP.
But to the extents that nations' entire contributions to their production of globally traded goods are not entirely reflected within the prices of their globally traded products, trade balances contribute to surplus trade nations' GDPs, and their
detrimental effects upon the GDPs of trade deficit nations, all exceed their na-tion's net balances of trade.

Respectfully, Supposn
 
We know that production per unit costs are often affected by their volumes of production; (i.e mass production induces economies of scale). When the same production lines or tools are employed for both domestic and exported production costs, they similarly affect the per unit costs of both products produced for export or domestic markets which in turn affects the “real” values of those productions.

Trade balances contribute to surplus trade nations' GDPs. We cannot account or estimate the extent those additional production values due to global trade provided additional economies of scales to those trade surplus nations.
Similarly, trade deficits are detrimental to their nation's GDPs. We cannot account or estimate the extent of trade deficits nations reduced values of GDP beyond the extent of their negative balance of trade. Among domestic production's unestimable domestic production gains or losses that exceed the extents of their nation's international balances of trade, were opportunities for economies of scale.

Respectfully, Supposn
 
Nordberg said:
what is your point?
Click to expand...
Supposn said:
Balances of trade understate their effects upon their nation's domestic production. ... Nations' annual imports crowd their own domestic products out of their marketplaces and thus reduced their nation's domestic productions. Just as positive trade balances contributed to surplus trade nations' GDPs, negative trade balances reduced trade deficit nations' GDPs, and their balances of trade to some extents understated their effects upon their nation's domestic production. ...
Click to expand...
Respectfully, Supposn
 
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