MANAGEMENT

Detailed explanation-1: -A trade deficit occurs when a country’s imports exceed its exports during a given time period. It is also referred to as a negative balance of trade (BOT).

Detailed explanation-2: -A trade deficit occurs when the value of a country’s imports exceeds the value of its exports-with imports and exports referring both to physical goods and services. In simple terms, a trade deficit means a country is buying more goods and services than it is selling.

Detailed explanation-3: -A country has a trade deficit when the value of its imports exceeds the value of its exports. The impacts of trade deficits are frequently over-simplified. Trade deficits can be damaging but they also bring welcome economic benefits.

Detailed explanation-4: -If imports exceed exports, the country or area has a trade deficit and its trade balance is said to be negative. However, the words ‘positive’ and ‘negative’ have only a numerical meaning and do not necessarily reflect whether the economy of a country or area is performing well or not.

Detailed explanation-5: -The growth in imports, especially from low-wage countries, also puts downward pressure on the wages of U.S. workers. If the prices of these products fall, then this puts downward pressure on prices in the U.S. Domestic firms are then forced to cut wages or otherwise reduce their own labor costs in response.