Trade Deficits
A trade deficit or a trade gap occurs when a trading partner imports more goods and services than it exports. On the other hand, a trade surplus exists when a trading partner exports more goods than it imports. These trade balances affect the very vitality of a nation’s economic sector since trade deficits trigger credit borrowing. The US has … Keep Reading → accumulated trade deficits with its trading partners in Asia, namely China and Japan, while running a trade surplus with Australia. Learn more about the delicate trade balance and how trade deficits and trade surpluses effect the economic health of a nation here.
