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Please improve this article if you can. (January 2007)

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.

The concept of Balanced Trade arises from an essay by Michael McKeever Sr. of the McKeever Institute of Economic Policy Analysis. According to the essay, “BT is a simple concept which says that a country should import only as much as it exports so that trade and money flows are balanced. A country can balance its trade either on a trading partner basis in which total money flows between two countries are equalized or it can balance the overall trade and money flows so that a trade deficit with one country is balanced by a trade surplus with another country.”

A more extensive argument for balanced trade, and a program to achieve balanced trade is presented in Trading Away Our Future, by Raymond Richman, Howard Richman and Jesse Richman. “A minimum standard for ensuring that trade does benefit all is that trade should be relatively in balance.”

References

  1. ^ McKeever, Sr, Michael (1996). “Balanced Trade: Toward the Future of Economics” (HTML). McKeever Institute of Economic Policy Analysis. Retrieved on 2008-04-16.
  2. ^ Richman, Raymond; Howard Richman and Jesse Richman (2008). “Trading Away Our Future” (HTML). Ideal Taxes Association. Retrieved on 2008-04-22.

See also

  • Unequal exchange
  • Fair trade

v • d • e

International trade

Definitions

Balance of payments · Current account (Balance of trade) · Capital account · Foreign exchange reserves · Sovereign wealth fund · Net Capital Outflow · Comparative advantage · Absolute advantage · Import substitution industrialization · International trade

Organizations and policies

World Trade Organization · International Monetary Fund · World Bank Group · International Trade Centre · Trade bloc · Free trade zone · Trade barrier

Schools of thought

Free trade · Balanced trade · Mercantilism · Protectionism

Related issues

Globalization · Outsourcing · Trade justice · Fair trade

Retrieved from “http://en.wikipedia.org/wiki/Balanced_trade”


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