Explain the Terms Balance of Trade, Trade Deficit, and Trade

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The Answer is A nation's balance of trade is the difference in value between its exports and imports. Because the United States imports more products than it exports, it has a negative balance of trade, or trade deficit. The trade deficit fluctuates according to such factors as the health of the United States and other economies, productivity, perceived quality, and exchange rates. Trade deficits are harmful because they can mean the failure of businesses, the loss of jobs, and a lowered standard of living. When a nation exports more goods than it imports, it has a favorable balance of trade, or trade surplus. Until about 1970, the United States had a trade surplus due to an abundance of natural resources and the relative efficiency of its manufacturing systems.

Explain the Terms Balance of Trade, Trade Deficit, and Trade

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Correct Answer:
Verified

Explain the Terms Balance of Trade, Trade Deficit, and Trade

Essay

Correct Answer:VerifiedShow Answer

Correct Answer:
Verified