trade deficit

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Related to Trade deficits: Trade surplus

Unfavorable Balance of Trade

The difference between the value of a country's exports and the value of its imports such that imports exceed exports. Analysts disagree on the impact, if any, of an unfavorable balance of trade on the economy. Some economists believe that an unfavorable balance of trade, especially if sustained, causes unemployment and lowers GDP growth. Others believe that the balance of trade has little impact, because the more international trade occurs, the more likely it is that foreign companies will invest in the home country, negating any negative effects. An unfavorable balance of trade is also called a trade deficit.

trade deficit

The amount of goods and services that a country imports that is in excess of the amount of goods and services it exports. Large trade deficits may result in unemployment and a reduction in economic growth in the country with the deficit. Compare trade surplus.
References in periodicals archive ?
Independent experts have predicted a $19 billion trade deficit.
The impact of budget cuts on the trade deficit is difficult to measure precisely--studies find that every $100 in budget deficit reduction yields from $20 to $50 in trade deficit reduction.
trade deficit data, given Standard & Poor's recent downgrade of debt ratings on General Motors Corp.
trade deficit will right itself without the help of government intervention.
In the latest three months, the country suffered a record trade deficit of pounds 13.
During years of "worsening" trade deficits, the unemployment rate has, on average, fallen by 0.
trade deficits to buy T-bills, skyscrapers, and movie companies.
In any event, this certainly impinges on the certainty of the results from the Stein "model" that trade deficits are "good.
trade deficit with Japan has reduced the acrimony that has soured trade relations between the two countries.
Many people moan about budget deficits, trade deficits, etc.
Other developed countries with high wages, such as Japan and Europe, do not have trade deficits.
Although reaching a crescendo in 2004, heavy foreign borrowing and associated trade deficits really began in earnest in the 1980s.