Tuesday, May 15, 2007
US Trade Defecit: Getting Better?
The article was basically about how the US is starting to produce more goods for themselves as opposed to getting everything from overseas. By doing this the US can decrease their trade deficit. Trade deficit is the excess of imports over exports. The US trade deficit is going to go down in the future because the US is not going to make more of their goods and import less. Decreasing trade deficit is largely due to the weak dollar. The weak dollar is a term used to describe the fall in value against foreign currencies. This can be a good thing for the US because it will make them use more of their own stuff instead of spending all of their money on foreign goods. Also, if the US dollar value falls it will be easier for another country who couldn't afford to buy American goods before to be able to purchase American goods. Thus increasing the amount of exports from America. The US will start making their own cars, engines and other neccessities. This will be good for people in the future because it will create more jobs for the unemployed.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment