The Mudcat Café TM
Thread #165570 Message #3998503
Posted By: Stanron
30-Jun-19 - 06:54 AM
Thread Name: BS: Brexit #3: A futile gesture?
Subject: RE: BS: Brexit #3: A futile gesture?
In trade the 'deficit' is the difference between how much you buy and how much you sell. You do not make a profit when you buy. You might buy with a profit potential but you can only make a profit when you sell.
The EU sells more to the UK than the UK sells to the EU. If trade fails between us, not that anyone wants that to happen, but if it fails the EU will lose more profit than the UK. You might try some sleight of hand with proportional statistics to make it look less but you would only be fooling yourself.
Also there are at least two types of buying. If you buy to consume there is no profit and no profit potential. If you buy to manufacture, develop or invest you have a potential profit, but that might be seen as a lesser potential profit than if you keep your money in your pocket and wait for a better chance.
Between countries there is always a possibility of trade deficit.