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Background
In this increasingly borderless world, a country’s economic activities occur not only inside that country but also outside. Therefore, the international economics subject is established. Among many topics that international economics cover, trade balance is one of the vital aspects in studying international economic activities. Trade balance is a part of a country’s Balance of Payments. It refers to the balance of exports value subtracted by imports value in a country in a period of time. The trade balance of a country is theoretically determined by five factors which are inflation rates, exchange rates, trade policies, domestic country’s income and foreign country’s income...
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