Table of Contents
Sure, here is the definition of trade deficit:
Trade deficit: A situation where a country imports more goods and services than it exports in a particular time period.
In other words, the country is spending more money on imports than it is earning from exports. If the country’s exports are greater than its imports, it has a trade surplus.
There are a number of factors that can contribute to a country’s trade deficit. These include:
In general, a trade deficit is not necessarily a problem. However, it can have a number of negative consequences, including:
Therefore, countries that have a trade deficit need to be careful to manage their trade imbalances in order to avoid these negative consequences.
Table of Contents
Categories