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

Aug 2010
249
40
Cliffside Park, NJ
#1
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 globally traded goods and service products which contribute to trade surplus nations' and reduce trade deficit nations' gross domestic products, (GDPs).

We know productions from different enterprises can resonate with each other.

An example of 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, and when more or fewer factory workers are employed, both enterprises' production, (i.e. their sales volumes) are more or less affected.

Both enterprises contribute to their nation's domestic production, but they do not affect each other's prices per units of production. If the factory increases their workforce to produce more export products, the increased pizza shop sales will not be recognized and attributed as due to the nation's increased production for global trade. Trade surplus nation's positive balance of global trade contributes to their GDP, but their net trade balance to some extent understates global trades' effects upon their domestic production.

Nations' annual imports crowd their domestic products out of their nation's 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.

These leverages due to resonating productions are the major, among causes of trade balances understating their effects upon their nation's domestic production.

Respectfully, Supposn
 
Aug 2010
249
40
Cliffside Park, NJ
#2
We know it's not unusual for governments 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 contributions to surplus trade nations' GDPs, and their detrimental effects upon the GDPs of trade deficit nations, all exceed the their nation's net balances of trade.

Respectfully, Supposn
 
Aug 2010
249
40
Cliffside Park, NJ
#3
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 those inestimable gains or losses, were opportunities for economies of scale.

Resectfully, Supposn