Although popular opinion frequently portrays trade deficits (actually, account deficits) as "bad," can you present economic reasons why a trade deficit might be considered "good"?
A current account deficit simply means that the country is purchasing more goods and services from foreigners than it is selling to them. In addition, when an economy is attractive to foreign investors, capital will flow into the country. This inflow of capital will cause the domestic currency to appreciate, which will often lead to a trade deficit.
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A firm that conducts business all over the world is called a(n)
A. multinational corporation. B. international conglomerate. C. competitive corporation. D. government-owned business.
A consumer buys only food and clothing. If the quantity of food bought increases while that of clothing remains the same, the marginal utility of food will:
a. fall, but not as fast as the marginal utility of clothing falls. b. rise, but not as fast as the marginal utility of clothing rises. c. rise relative to the marginal utility of clothing. d. fall relative to the marginal utility of clothing.
The countries of ______ and _____ have a significant influence over changes in U.S. interest rates.
Fill in the blank(s) with the appropriate word(s).
Refer to the table above, which gives five points on a nation's PPF. As we increase the production of X,
A) the output of Y increases. B) unemployment increases. C) the opportunity cost of each new unit of X increases. D) the opportunity cost of each new unit of X decreases.