Editing Balance of trade (section)

===Historical example===
Many countries in early modern Europe adopted a policy of [[mercantilism]], which theorized that a trade surplus was beneficial to a country. Mercantilist ideas also influenced how European nations regulated trade policies with their colonies, promoting the idea that natural resources and [[cash crop]]s should be exported to Europe, with processed goods being exported back to the colonies in return. Ideas such as [[bullionism]] spurred the popularity of mercantilism in European governments.<ref>{{Citation|last1= Ames |first1= Glenn J.|author-link=Glenn J. Ames|title= Colbert, Mercantilism and the French Quest for the Asian Trade|year= 1996}}</ref>

[[File:Merchandise exports (1870-1992).png|thumb|Merchandise exports (1870–1992)]]
[[File:Trade policy, exports and growth in selected European countries.png|thumb|Trade policy, exports and growth in selected European countries]]

An early statement concerning the balance of trade appeared in ''Discourse of the Common Wealth of this Realm of England'', 1549: "We must always take heed that we buy no more from strangers than we sell them, for so should we impoverish ourselves and enrich them."<ref>Now attributed to [[Thomas Smith (diplomat)|Sir Thomas Smith]]; quoted in [[José Rizal]], ''The Wheels of Commerce'', vol. II of ''Civilization and Capitalism 15th–18th Century'', 1979:204.</ref> Similarly, a systematic and coherent explanation of balance of trade was made public through [[Thomas Mun]]'s 1630 "England's treasure by foreign trade, or, The balance of our foreign trade is the rule of our treasure".<ref>Thomas Mun, Oxford National Dictionary of Biography</ref>

Since the mid-1980s, the [[United States Balance of trade|United States has had a growing deficit in tradeable goods]], especially with Asian nations (China and Japan) which now hold large sums of U.S. debt that has in part funded the consumption.<ref name=Bivens>Bivens, L. Josh (14 December 2004). [http://www.epinet.org/Issuebriefs/203/ib203.pdf Debt and the dollar] {{webarchive|url=https://web.archive.org/web/20041217041437/http://www.epinet.org/Issuebriefs/203/ib203.pdf |date=17 December 2004 }} ''Economic Policy Institute''. Retrieved on 8 July 2007.</ref><ref name=Phillips>{{Cite book|author=Phillips, Kevin|year=2007|title=Bad Money: Reckless Finance, Failed Politics, and the Global Crisis of American Capitalism|publisher=Penguin| isbn=978-0-14-314328-4}}</ref><ref name=debt>[http://www.treas.gov/tic/mfh.txt Major foreign holders of Treasury securities]. United States Treasury.</ref> The U.S. has a trade surplus with nations such as Australia. The issue of trade deficits can be complex. Trade deficits generated in tradeable goods such as manufactured goods or software may impact domestic employment to different degrees than do trade deficits in raw materials.<ref name=Phillips/>

Economies that have savings surpluses, such as Japan and Germany, typically run trade surpluses. China, a high-growth economy, has tended to run trade surpluses. A higher savings rate generally corresponds to a trade surplus. Correspondingly, the U.S. with its lower savings rate has tended to run high trade deficits, especially with Asian nations.<ref name=Phillips/>

Some have said that China pursues a mercantilist economic policy.<ref>{{cite web|url=https://krugman.blogs.nytimes.com/2009/12/31/macroeconomic-effects-of-chinese-mercantilism/|title=Macroeconomic effects of Chinese mercantilism|date=31 December 2009|access-date=15 March 2018}}</ref><ref>{{cite web|url=http://www.industryweek.com/public-policy/chinas-economic-mercantilism|title=China's Economic Mercantilism|date=24 July 2013|access-date=15 March 2018}}</ref><ref>{{cite news|url=https://www.reuters.com/article/us-china-usa-business/u-s-tech-group-urges-global-action-against-chinese-mercantilism-idUSKBN16N0YJ|title=U.S. tech group urges global action against Chinese|date=16 March 2017|newspaper=Reuters|access-date=15 March 2018}}</ref> Russia pursues a policy based on protectionism, according to which international trade is not a [[win–win game]] but a [[zero-sum game]]: surplus countries get richer at the expense of deficit countries.<ref>{{cite web|url=http://www.investopedia.com/terms/p/protectionism.asp|title=Protectionism|author=<!--Staff writer(s); no by-line.-->|work=Investopedia|date=25 November 2003|access-date=15 March 2018}}</ref><ref>{{cite news|url=https://www.reuters.com/article/us-trade-protectionism/russia-was-most-protectionist-nation-in-2013-study-idUSBRE9BT0GP20131230|title=Russia was most protectionist nation in 2013: study|date=30 December 2013|newspaper=Reuters|access-date=15 March 2018}}</ref><ref>{{cite news|url=http://russia-insider.com/en/politics/study-russia-insulated-further-sanctions-import-substitution-success/ri20491|title=Study: Russia Insulated From Further Sanctions by Import Substitution Success|date=26 July 2017|access-date=15 March 2018}}</ref><ref>{{cite web|url=https://www.rbth.com/business/2017/02/09/food-import-substitution-turns-out-to-be-extremely-profitable_699158|title=Food import substitution turns out to be extremely profitable|last=Samofalova|first=Olga|date=10 February 2017|access-date=15 March 2018}}</ref>