How does a country's business cycle generally affect the international trade balance?

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Business

Albert Mack

31 December, 02:42

How does a country's business cycle generally affect the international trade balance?

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Frida Lane · Answer 1

How does a country's business cycle generally affect the international trade balance? Depending on the growth an sales of businesses affecting the economy, imports may drop and as they start to boom, imports begin to rise. Exports may also drop, but trade deficit normally does not happen during these times. A recession or recessionary period can contribute to the import and export sizes within different countries.