File: //old_home_backup/consumeraffairs.org.uk/public_html-20241004153750/demand/foreign-balance.php
<!DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd">
<html xmlns="http://www.w3.org/1999/xhtml">
<head><!-- TemplateBeginEditable name="EditRegion2" -->
<title>Economic Consumer Affairs -
Foreign Balance
| 2017/8</title><!-- TemplateEndEditable -->
<meta name="description" content="Socio Economic - Socio Economic Groups" />
<meta name="keywords" content="Socio Economic - Socio Economic Groups" />
<meta http-equiv="Content-Type" content="text/html; charset=UTF-8" />
<script type="text/javascript" src="/js/jquery-1.4.2.min.js"></script>
<script type="text/javascript" src="/js/script.js"></script>
<script type="text/javascript" src="/js/coin-slider.min.js"></script>
<link href="/style.css" rel="stylesheet" type="text/css" />
<link href="style.css" rel="stylesheet" type="text/css" />
</head>
<body>
<div class="main">
<div class="header">
<div class="header_resize">
<div class="logo"> <a href="/index.php"><img src="/images/logo.gif" width="200" height="130" alt="Economic Consumer Affairs Starting your own business" /></a> </div>
<div class="menu_nav">
<ul>
<li><a href="/index.php"><span>Home</span></a></li>
<li><a href="/applied-economics.php"><span>Applied Economics</span></a></li>
<li><a href="/bank-of-england.php"><span>Banks</span></a></li>
<li><a href="/beveridge-william.php"><span>Beveridge</span></a></li>
<li><a href="/capital-stock.php"><span>Capital Stock</span></a></li>
<li><a href="/earned.php"><span>Income</span></a></li>
<li><a href="/economy/UK/economy.php"><span>UK Economy</span></a></li>
<li><a href="/contact.php"><span>Contact</span></a></li>
</ul>
</div>
<div class="clr"></div>
<div class="slider">
<div id="coin-slider"> <a href="/index.php"><img src="/images/slide1.jpg" width="960" height="180" alt="Bank of England " /></a> <a href="/index.php"><img src="/images/slide2.jpg" width="960" height="180" alt="How to make a start with your own business" /></a> </div>
<div class="clr"></div>
</div>
<div class="clr"></div>
</div>
</div>
<div class="content">
<div class="content_resize"><!-- TemplateBeginEditable name="EditRegion1" -->
<div class="mainbar">
<div class="article">
<h1>
Foreign Balance
</h1><script type="text/javascript"><!--
google_ad_client = "";
/* links in a line #215670 */
google_ad_slot = "8962789804";
google_ad_width = 468;
google_ad_height = 15;
//-->
</script>
<script type="text/javascript"
src="http://pagead2.googlesyndication.com/pagead/show_ads.js">
</script>
<div id="images3"><img src="/economics-imgs/economics-256.jpg" alt="Foreign Balance" /></div>
<p>
Foreign Balance, another name for the balance between payments to people in other countries and receipts from them. The balance may be described as active or passive (surplus or deficit). Apart from its effect upon the gold or other reserves, an active or passive balance affects the domestic economy. </p>
<p>An active balance tends to have the same effect as an increase in domestic investment (e.g. house or road construction): i.e. it increases demand, employment, incomes and prices, and in turn imports, and so tends to restore equilibrium to the foreign balance. A passive balance tends to reduce employment, incomes and prices, and cuts demand for goods generally, including imports, thus releasing goods for export and tending to restore equilibrium to the foreign balance. <br /><br />Foreign Exchange, the currency of other countries. It is required by individuals and institutions to buy goods and services from and to make gifts or loans to people in other countries. At the same time they will be buying our currency to pay for their purchases here. The two-way nature of these transactions means that as long as relative prices are 'right', most of our demands for other countries' currencies will be matched by their demands for our currency, leaving only small differences to be financed by movements of gold or foreign exchange reserves.<br /><br />Most countries tend to hold as reserves only convertible foreign exchange because it will be readily accepted by almost all countries in payment for goods or services; inconvertible currency may be acceptable only to the country that issued it.<br /><br />Foreign exchange is required in trade because there is no single currency that is accepted by all countries, although many countries use sterling and some dollars. <br /><br />Foreign Exchange Market. (a) Strictly a financial centre in which foreign exchange (foreign currency) is bought and sold. In Britain the members are the exchange dealers of banks and financial houses, plus several recognized firms of exchange brokers. When Governments control the exchanges, business may be done usually only through recognized dealers. (/4 More generally the complex of dealings in foreign currencies which determine the day-to-day prices of currencies in terms of one another. <br /><br />
</p>
<h2>
What next? Socio Economic - Socio Economic Groups
</h2>
<ul>
<div id="images4"><img src="/econ/images-economy-6.jpg" alt="Foreign Balance" /></div>
<li><a href="/foreign-investment.php"> Foreign Investment </a></li>
<li><a href="/trade/UK/full-employment.php"> Full Employment </a></li>
<li><a href="http://www.ingenesist.com/general-info/a-definition-for-innovation-economics.html" target="_blank"> (editors Note: The Following Is Too Good To Leave On Wikipedia. Underlines Are This Editor’s Emphasis – Sounds Like Conversational Currency To Me): Innovation Economics Is An Economic Doctrine That Reformulates The Traditional Model Of Economic Growth So That Knowledge, </a> <img src="/images/icon_external.gif" width="9" height="9" /></li>
<li><a href="http://www.nps.edu/Academics/Centers/DRMI/index.html" target="_blank"> Http://www.nps.edu/academics/centers/drmi/index.html </a> <img src="/images/icon_external.gif" width="9" height="9" /></li>
</ul>
<br />
<p>
<spc: %other />
</p>
<div class="clr"></div>
</div>
</div>
<!-- TemplateEndEditable -->
<div class="sidebar">
<div class="gadget">
<h2 class="star"><a href="/index.php">
Foreign Balance
</a></h2>
<div class="clr"></div>
<script async src="//pagead2.googlesyndication.com/pagead/js/adsbygoogle.js"></script>
<!-- spamdex-display -->
<ins class="adsbygoogle"
style="display:block"
data-ad-client="ca-pub-2121528995419082"
data-ad-slot="8029362605"
data-ad-format="auto"></ins>
<script>
(adsbygoogle = window.adsbygoogle || []).push({});
</script>
</script>
<script type='text/javascript'><!--// <![CDATA[
OA_show(53);
// ]]> --></script>
<p><a href="/index.php">Economics</a> uses everyday words in a more specific sense than that in which they are used by the non-economist. 'Demand', 'supply', cost', 'market', 'rent' and many other words do not mean the same to economists as they do in everyday usage.<br />
</p>
<p><strong>Recent Reads</strong><br />
<a href="/bank-of-england.php">Banks</a>
<a href="/capital-stock.php">capital</a>
<a href="/markets/economics/debt-conversion.php">debt</a>
<a href="/division-of-labour.php">labour</a>
<a href="/trade/UK/growth-economic.php">economy</a>
<a href="/hume-david.php">David Hume</a>
<a href="/land-tax.php">land tax</a>
<a href="/law-economic.php">law</a>
<a href="/marx-karl.php">Karl Marx</a>
<a href="/pension-term-used.php">pensions</a> <br />
. </p>
<p><a href="http://www.economist.com/business-finance" target="_blank"><img src="/images/econm.gif" alt="Consumer Affairs" width="267" height="553" border="0" /></a></p>
<p> </p>
</div>
</div>
<div class="clr"></div>
</div>
</div>
<div class="fbg">
<div class="fbg_resize">
<div class="col c1">
<h2><span>consumeraffairs.org.uk
</span></h2>
<p>Since then his writings have in turn been increasingly reinterpreted as a special case both by some followers and by some economists who had not wholly accepted his writings. The content of economics is in a state of change, and this consumeraffairs.org.uk
site is therefore not a final statement of economic doctrine.<br /><br /><strong>Economics</strong> is in the last resort a technique of thinking. The reader will therefore need to make an intellectual effort, more substantial for some web entries than for others, to get the most interest and value out of this website.<br />
</p>
</p>
</div>
<div class="col c2">
<h2>Ecomical Favourites</h2>
<ul id="spcFooterLinks"><li><a href="/forced-saving.php" title="Forced Saving" alt="Forced Saving">Forced Saving</a></li><li><a href="/forecasting-predicting.php" title="Forecasting Predicting" alt="Forecasting Predicting">Forecasting Predicting</a></li><li><a href="/forecasts-forecasts.php" title="Forecasts Forecasts" alt="Forecasts Forecasts">Forecasts Forecasts</a></li><li><a href="/foreign-balance.php" title="Foreign Balance" alt="Foreign Balance">Foreign Balance</a></li><li><a href="/foreign-investment.php" title="Foreign Investment" alt="Foreign Investment">Foreign Investment</a></li><li><a href="/forward-exchange-rate.php" title="Forward Exchange Rate" alt="Forward Exchange Rate">Forward Exchange Rate</a></li><li><a href="/free-economy-one.php" title="Free Economy One" alt="Free Economy One">Free Economy One</a></li><li><a href="/free-enterprise.php" title="Free Enterprise" alt="Free Enterprise">Free Enterprise</a></li><li><a href="/free-exchanges.php" title="Free Exchanges" alt="Free Exchanges">Free Exchanges</a></li><li><a href="/free-trade-trade.php" title="Free Trade Trade" alt="Free Trade Trade">Free Trade Trade</a></li></ul></div>
<div class="clr"></div>
</div>
</div>
<div class="footer">
<div class="footer_resize">
<p class="lf">© Copyright 2018 | <a href="mailto:contact@consumeraffairs.org.uk">contact@consumeraffairs.org.uk
</a> |<a href="http://www.economics.ox.ac.uk/" title="Economics" target="_blank"> Economics</a> | <a href="https://www.sandrajonaspublishing.com/">Sandra Jonas Publishing</a> | One Heddon Street | Mayfair | London | W1B 4BD | Consumer Affairs was a not-for-profit organisation offering free advice about debt and money management via guides and reports on its website. </p>
</div>
</div>
</div>
<script type="text/javascript">
var _gaq = _gaq || [];
_gaq.push(['_setAccount', 'UA-31916544-1']);
_gaq.push(['_trackPageview']);
(function() {
var ga = document.createElement('script'); ga.type = 'text/javascript'; ga.async = true;
ga.src = ('https:' == document.location.protocol ? 'https://ssl' : 'http://www') + '.google-analytics.com/ga.js';
var s = document.getElementsByTagName('script')[0]; s.parentNode.insertBefore(ga, s);
})();
</script><script>
(function(i,s,o,g,r,a,m){i['GoogleAnalyticsObject']=r;i[r]=i[r]||function(){
(i[r].q=i[r].q||[]).push(arguments)},i[r].l=1*new Date();a=s.createElement(o),
m=s.getElementsByTagName(o)[0];a.async=1;a.src=g;m.parentNode.insertBefore(a,m)
})(window,document,'script','https://www.google-analytics.com/analytics.js','ga');
ga('create', 'UA-87073664-1', 'auto');
ga('send', 'pageview');
</script></body>
</html>