Such a combination of shocks would lead not only to a maximum income effect on the U.S. trade balance
Thus, fiscal policy appears to have a significant role to play in U.S. trade balance
Figure 1 shows U.S. trade balances
in goods and in services by month for 2007-2010, and to date for 2011.
Indeed, the worsening of the bilateral U.S. trade balance
vis-a-vis Europe is about the same dollar magnitude as with China.
Zrust pointed out that, in 2001, the aerospace industry was the largest positive net contributor to the U.S. trade balance
, producing an industry trade surplus of almost $27 billion.
Their logic seems to be that the U.S. trade balance
, which has been in considerable deficit lately, "should" move toward zero, or surplus, and that dollar depreciation is a necessary part of this process.
Critics contend that NAFTA will worsen the U.S. trade balance
because additional investment in Mexico, coupled with the elimination of tariffs, will increase U.S.
These estimates imply that equal growth in the United States and abroad automatically will lead to a worsening in the U.S. trade balance
. Some authors have suggested, however, that the high U.S.
comparative advantage in producing certain kinds of services and the same relative price and income movements that have led to continued improvements in the U.S. trade balance
. In line with the growing importance of services in U.S.
In other words, these 2,300 companies contributed a positive $17 billion to the U.S. trade balance
in one year.
merchandise imports rose 23%, and the U.S. trade balance
rose 26%, from -$504 billion in 2009 to -$635 billion in 2010.
Deficit of the U.S. trade balance
grew in March to 48.2 bn USD (growth to 47 bn USD was expected).