Trade Deficit and Surplus

Thoughts on a Free Market Economy…
“Trade Deficit and Surplus”
By Phyllis Hunsinger
April 1, 2016

Any discussion of economic government policy will include terms such as trade deficit and trade surplus. What is meant by those terms?

A trade deficit occurs when the value of imported goods exceeds the value of exported goods. A trade surplus occurs when the value of a country’s exported goods exceeds the value of its imported goods. From these definitions it is easy to conclude that for any country to prosper …

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