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 ?
By using the uncorrected data, the USTR can misleadingly appear to make more than half the $177 billion 2013 NAFTA goods trade deficit "disappear.
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.
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.
With the possible exceptions noted in the introduction, the categorization of trade deficits as "bad" or "good" tend to be exaggerations of economic reality.
We're not where we need to be - but for the first time we can see some signs that the trade deficit between Japan and the U.
In every other year, they've run a trade deficit, and the sum of those trade deficits is all the money they borrowed from us in the past.
The course we should pursue is one that views job creation as the measure of success, not high and persistent trade deficits.
However, since the early 1980s, the trade deficit in manufactures alone has been about as big as the current account deficit, i.
Since growth in Japan and the euro area began picking up in the latter half of 2003, trade deficits with these regions have begun to increase as well.
But Buffett's investing track record should merit some attention for his view that trade deficits since 1970 have resulted in a transfer of 5 percent of U.