USA HISTORY

Detailed explanation-1: -Trade is critical to America’s prosperity-fueling economic growth, supporting good jobs at home, raising living standards and helping Americans provide for their families with affordable goods and services.

Detailed explanation-2: -Reducing costs Another major benefit of importing is the reduce in manufacturing costs. Many businesses today find importing products, parts of products and resources more affordable than producing them locally.

Detailed explanation-3: -When there are too many imports coming into a country in relation to its exports-which are products shipped from that country to a foreign destination-it can distort a nation’s balance of trade and devalue its currency.

Detailed explanation-4: -Advantages of Trade Deficits The most obvious benefit of a trade deficit is that it allows a country to consume more than it produces. In the short run, trade deficits can help nations to avoid shortages of goods and other economic problems. In some countries, trade deficits correct themselves over time.