Balance of trade
The balance of trade is that part of a nation's balance of payments dealing with imports and exports—that is, trade in goods and services—over a given period. If exports of goods exceed imports, the trade balance is said to be "favorable"; if imports exceed exports, the trade balance is said to be "unfavorable."
A trade deficit is an amount by which a country's merchandise exports exceed its merchandise imports. It does not include "hidden exports" such as financial deals.[1][2] A trade surplus is an amount by which a country's merchandise exports exceed its imports.
USA trade deficit
After a period of 70 years of being a creditor nation, the USA has became a debtor nation in 1985.[3] Some reputable economists of the 2010's disagree on whether the USA trade deficit is a debt that ever has to be paid off.[4][5][6][7]
Notes
- ↑ http://usinfo.state.gov/products/pubs/oecon/chap12.htm
- ↑ http://crushliberalism.blogspot.com/2007/01/debunking-trade-deficit-myth.html
- ↑ https://www.heritage.org/report/the-us-debtor-nation-what-it-really-means
- ↑ https://www.forbes.com/sites/danikenson/2016/03/22/the-u-s-trade-deficit-is-not-a-debt-to-repay/
- ↑ https://www.cato.org/publications/congressional-testimony/americas-misunderstood-trade-deficit
- ↑ https://www.thebalance.com/u-s-china-trade-deficit-causes-effects-and-solutions-3306277
- ↑ http://fortune.com/2016/04/29/warren-buffett-foreign-trade/