Username: LuckyWoman Rating: Asked to: Heng Kim Date Created: 12 Aug 2015 |
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Category | 25 |
Tag | Forex |
Question | What is a trade deficit? |
Hello Lucky Woman, A trade deficit, which is also referred to as net exports, is an economic condition that occurs when a country is importing more goods than it is exporting. The deficit equals the value of goods being imported minus the value of goods being exported, and it is given in the currency of the country in question. For example, assume that the United Kingdom imports 800 billion British pounds worth of goods, while exporting only 750 billion pounds. In this example, the trade deficit, or net exports, would be 50 million pounds. |
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