Question

What are 3 reasons why the united states has been experiencing balance of trade deficits

What are 3 reasons why the united states has been experiencing balance of trade deficits

Homework Answers

Answer #1

The United States has been experiencing balance of trade dificits because the large trade deficit on foreign governments that block the sale of US products in the market's, which hurts American business and lowers their employer'a standard of living.

The real reason is the Americans are sending more than they produce. The overall trade deficit is the result to the saving and investment decisions of US households and business. The police's of foreign government affect only how that deficit is divided amoung America'a trading partners.

The overall trade deficit is straightforward :

If a country saves more of total output than it invest in business equipment and structures, it has extra output to sell to the rest of the world.

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