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U.S Trade Deficit Student’s name Institutional affiliation Date When a country imports more goods and services than it exports, it experiences trade deficits. Statistics show that the U.S trade deficit in 2015 was $531.5 billion with an increase of $23.2 billion from the previous year. It has been the largest in the world since 1975. The goods imported in the United States include automobiles, petroleum, and cell phones while its exports comprise of food and commercial aircraft. There are dangers associated with running a trade deficit for any country over the long term as it ruins and weakens the economy (Amadeo, 2016). The state acquires goods and services through debt financing which is detrimental to the United State’s economy over an extended period, and it is risky since it can be terminated. Moreover, any country with high levels of deficit destroys its economy through outsourcing of jobs, loss of competitiveness and decline in the standards of living. High debt levels indicate high amounts of imports compared to exports. This further leads to losing of expertise and competitiveness for U.S companies. Bilateral agreements among nations should address the trade deficits in the country. High exports in a country translate to expansion in countries firms, better living standards for citizens and high competitiveness thus having a better economy (Moran, 2015). Insights into the US balance of payments show that the country imports more goods than it exports thus creating a deficit in the balance of payments. Currently, the country runs a deficit current and financial account. The state has invested massively in the production of capital goods,
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