Any modern economy is composed of three economic units
. These economic units are what determines the status of any current economy because they are the collective economy. The first of the three units are the household unit. The second type of economic unit is the business firm.
The business firm whether large or small or even a global corporation are considered an economic unit. The third economic unit in any given economy is the government whether it is national state-level or local. Any economy is affected on how well these economic units balance their budgets or lack of thereof and also takes into account the conditions of the best forex trading markets. Any of these units can conduct in surplus spending or deficit spending. This correlates intimately with whether or not they are running a surplus or running into debt i.e. having expenditures greater than income or income greater than expenditures. During the lifecycle of an economic unit they can start off as deficit spenders. For example an individual starting out in life will be a deficit spender as he gives loans to go to college and buy a car and get a mortgage and so on. As this person ages he will become a surplus spender once he pays back his loans and has retirement money to which to live off of and finance other endeavors like financing his children through college or taking advantage of forex trading tips in the market.
Likewise a new business firm or government can be a deficit spender or a surplus spender depending on which point of the cycle they are on. For example the company 3M. This is a huge global company that started off in mining and branched off into government contracts and other advanced technology developments. What is not known about 3M is that it took three decades before they were in the black. So when it comes to investing is wise to bear in mind where a particular unit is in terms of its budget expenditures.