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Pros

1. Raises a standard living of a countries residents

2. Reduces the threat of inflation

3. Indicates that countries residents are feeling confident and wealthy to buy more than the country produces

Cons

1. Over time can cause job outsourcing

2. Leads to lowering in value of the dollar compared to other currency

3.Leads to more foreign ownership of our assets and companies

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Q: Describe the pros and cons of the large us trade deficit?
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