International trade

Today we see a lot of activity within the international trade arena as the U.S. trade deficit has soared to a record high.

Trade is designed to create bigger market opportunities, so why is the balance of trade so out of balance for the U.S.?
Is it bad to have a trade deficit, or does it not matter?

Solution Preview

International Trade

As international trade continues to grow, the United States trade deficit also continues to grow. Currently, the trade deficit is at an all-time high. This is an indication that the country imports more than it exports to other countries. In any economy, a trade deficit is not favorable since it has negative implications on the currency of the country (Meade, 2015). The deficit continues to grow despite the fact that international trade is supposed to open new market opportunities for businesses and the country in other regions across the world.

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