What is external economic equilibrium? Back to list

Member SinceJul 08, 2021

Posts 201

Sterling

Nov 25, 2021 a 12:35
Any foreign economic policy aims to achieve foreign economic balance.
There is a broad and a narrow external economic balance.

The process of proportional economic growth under the general process of national macroeconomic reproduction is referred to as external economic equilibrium. Meanwhile, the domestic economy is stabilizing and growing due to the acquisition of foreign economic balance.

External economic equilibrium can be defined as achieving a balance of payments between external partners and external flows created by the country.

A stable economic growth rate, price stability and national currency, as well as full employment, ensure foreign economic balance.

Member SinceJul 12, 2021

Posts 241

Fiba

Nov 25, 2021 a 18:50
External economic equilibrium is when there are no discrepancies in the supply and demand of goods with the rest of the world.  It is important to understand this principle because if external equilibrium exists it means that all countries are able to maintain an overall steady state. This principle is imperative because it ensures that there is no great disparity between countries in terms of supply and demand, which is always an issue due to various factors such as varying populations, weather patterns or natural disasters.

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