Balanced trade is an alternative economic model to free trade. Under balanced trade nations are required to provide a fairly even reciprocal trade pattern; they cannot run large trade deficits. If deficits appear, the surplus nation must find a way to balance out trade or risk sanctions, fees, or quotas. Free trade is an economic concept referring to the selling of products between countries without tariffs or other trade barriers. ... Balance of trade figures are the sum of the money gained by a given economy by selling exports, minus the cost of buying imports. ... Sanction is an interesting word, in that, depending on context, it can have diametrically opposing meanings. ... One pays a fee as renumeration for services, especially the honorarium paid to a doctor, lawyer or member of a learned profession. ... A quota is a prescribed number or share of something. ...

It is true that some deal-making between countries that want to export to a given target country may be needed in order to "trade" trade opportunities. This is somewhat similar to the "pollution credits" used by some industries to stay within regulatory environmental compliance, but still have flexibility to reallocate resources. pollution c, sometimes called pollution permits or pollution certificates are pollution rights as used in emissions trading. ...

Balanced trade policies can allegedly reduce "bumpy" changes, economic bubbles, and sudden corrections. In theory, balanced trade does not significantly reduce total trade compared to free trade because trade deficits cannot last forever anyhow. The theory is that it provides a smoother path to the inevitable. Currier & Ives print on economic bubbles, 1875. ...

Another principle of Balanced Trade is that governments treat economic displacement the same way they treat natural disaster victims (involving floods, hurricanes, etc.) No significant distinction is made between natural disasters and economic disasters from a life-disruption standpoint.

Balanced trade also suggests that the pace of economic disruption be on the scale of a generation. It is sub-generational changes that tend to cause the most disruption and suffering, according to the paradigm. For example, if a farmer is suddenly subjected to heavy free-trade pressure, then he/she would be allowed some amount of protection until natural retirement age. The next generation is then discouraged from taking up farming. A generational pace implies that somebody will not have to start over from scratch in the middle of their career.

External links

• Balanced Trade Blog
• Essay

See also

• Unequal exchange
• Fair trade