6.3.2

=East Asia=

__**Problems with Trade**__ Every country aims for a balance in trade, or the reference between how much a country exports and how much it imports. Before the 1800's, Chinese rulers had a strict limit on foreign traders. A small area of southern China was the only place that European merchants could trade. China sold the Europeans silk, porcelain and tea in exchange for gold and silver. Because of such strict limits China was a victim of trade surplus, which is when a country exports more than it imports. Everybody who traded with China then suffered from a trade deficit, which is when a country imports more than it exports.

[|Unbalanced]