TERMIUM Plus®

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DOMESTIC ABSORPTION [2 records]

Record 1 1991-11-05

English

Subject field(s)
  • Foreign Trade

French

Domaine(s)
  • Commerce extérieur

Spanish

Save record 1

Record 2 1985-05-14

English

Subject field(s)
  • Currency and Foreign Exchange
CONT

Absorption Approach. A method of analysing the effects of a devaluation or depreciation of a country's exchange rate on its balance of trade. The approach focuses attention on the relationship between national product (Y) and national absorption (A), where the latter is defined as the use of goods for the purposes of consumption and investment by the private and public sectors of the economy. The balance of trade (B) can only be positive (i.e. in surplus) if Y exceeds A. Thus in its simplest form the relationship may be written as B = Y - A.

Key term(s)
  • domestic absorption

French

Domaine(s)
  • Politique monétaire et marché des changes
CONT

Si on appelle A, absorption interne, la somme des consommations et des investissements et B, le solde de la balance commerciale, on peut écrire : R [revenu national] = A + B d'où B = R - A. La balance commerciale est négative si l'absorption (dépense intérieure) est supérieure au revenu national, elle est positive si l'absorption est inférieure au revenu national.

Spanish

Save record 2

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