Thursday, May 17, 2007

U.S. Trade Deficit: getting better?


This artilcle mainly concentrates on the amount of imports and exports that America is involved in. It also explains the growth that other countries such as Europe and China and Japan and others compared to the slow rate that American has faced in the last century. But that recently has changed due to the high demand of exports which causes the need for more emplyment which ultimately contributes to our nation's economic growth. A trade deficit is when a nation is importing more than exporting goods which doesn't help you in the long run but instead just decreases the nation's economy. The U.S. trade deficit is likely to do down in the future because as said in the article the value of the dollar keeps decreasing while those of other countries are increasing at a fast pace like the Euro which is now worth $1.40 and a british ppound is up to a value of 2 dollars. The U.S. is selling things like General motors like engines as well as food businesses like KFC as mentioned in the article. A weak dollar can actually help the countries economic growth because it gives the American good more competition for other countries to purchase.

No comments: