Balance of trade

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The balance of trade is that part of a nation's balance of payments dealing with imports and exports—that is, trade in goods and services—over a given period. If exports of goods exceed imports, the trade balance is said to be "favorable"; if imports exceed exports, the trade balance is said to be "unfavorable."

A trade deficit is an amount by which a country's merchandise exports exceed its merchandise imports. It does not include "hidden exports" such as financial deals.[1][2] A trade surplus is an amount by which a country's merchandise exports exceed its imports.

USA trade deficit

U.S. trade deficit with China. The difference between the red line and blue line represents an outflow of American wealth - capital that could be used to create American jobs rather than jobs in China and prosperity for the Chinese Communist Party.

After a period of 70 years of being a creditor nation, the USA has became a debtor nation in 1985.[3] Some reputable economists of the 2010's disagree on whether the USA trade deficit is a debt that ever has to be paid off.[4][5][6][7]

Notes