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If the U.S. has a trade deficit with Another Country, that means that we import more product into the U.S. than we export to that country. There are two main implications. The first is that we have money leaving the country (used to buy the foreign products). The second is that we are losing jobs to that country because we are 'hiring' more of their people to make things for us than we are 'hiring' here to make things for them.
Incidentally, some countries (such as China) intentionally 'devalue' their currencies so that their products are cheaper for us. The effect is that their products are cheaper to our citizens than those made here in the U.S. The result is an increased trade deficit as U.S. citizens buy more, cheaper foreign products. Walmart is as successful as it is because it sells mostly Chinese and other foreign products that are far cheaper than domestically made products. The ultimate impact though is loss of U.S. manufacturing jobs as the demand for 'expensive' U.S. made products declines.
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∙ 13y ago
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∙ 11y agobeacuse it does
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What hindered trade between Germany and the United states in 1915?
The British blockade hindered trade between Germany and the United States in 1915.
What action did US take when Castro seized American business in cuba?
the united states placed a trade embargo on Cuba
When did the United states surplus in international trade end?
1983 i think
What nation forced the opening of Japan to outside trade?
The United States.
Why was it difficult for the United states to trade with France before the war of 1812?
Great Britain placed restrictions on American trade.
Does the US have a trade deficit or a trade surplus with its largest trading partners?
The Bureau of the Census records indicated that in 2004, the United States had a trade deficit with each of its four largest trading partners.
How much is US trade deficit?
by 2004, the United States realized a record trade deficit of nearly $651 billion.
How did the decline in the US dollar impact the US trade deficit?
The United States began experiencing a serious trade deficit.
What countries do the US have a trade surplus with?
The United States has a high trade deficit with a number of countries. It has the highest trade deficit with China, at about 27 million dollars of debt.
Which would be most likely to reduce the US trade deficit?
an increase in the amount of United States exports
What was the trade deficit in the environmental controls industry segment in 1996?
In 1996 the United States had a trade deficit in the environmental controls industry segment, importing $381 million of products and services while exporting $242 million.
How does Walmart affect the GDP?
It increases the united states trade deficit. Their main suppliers are foreign so they import more than they sell foreign.
When did the US report its first trade deficit of the 20th century?
The United States has arguably had a trade deficit since at least the 1970s and was significantly increased during the Reagan Administration. The Clinton Administration almost successfully alleviated the U.S.'s national debt but the country is currently in debt again due to two different recessions in the 1990s/2000s
What is trade deficite?
trade deficit occurs when? trade deficit occurs when?
Does US have a deficit or trade surplus?
Trade deficit
Is India a trade deficit or trade surplus?
deficit
What factors have impacted negatively on the miscellaneous structural work metal industry?
One reason for this stagnation was the industry trade deficit between the United States and its foreign competitors.
