In the united states

In the united states - Trade Deficit Joseph A. Hrinda...

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Trade Deficit Joseph A. Hrinda Political Science 151 Mr. Crespo December 4, 2005 Very few issues in economics are misunderstood by the politicians and the public as much as the trade deficit. The metaphor of trade as some kind of battle, where surplus countries win and deficit countries lose, ignores the observation that trade is based on regional specialization. The long term theoretical push is toward equilibrium, for trade deficits and surpluses can only exist when there is an excess or lack of demand for a
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country’s investment assets. “For the United States some of the main issues are intellectual property rights, currency exchange rates, labor relations and market access.” (Hiscock, 1) The United States has not posted a trade deficit since its last surplus during its recession in 1991. “Its persistence has been to the dollar’s role as a reserve currency, continued growth in the U.S. economy, and the continued high demand for American investment assets.” (Lee, 2) The decline in manufacturing in the United States has also affected the trade deficit. “In the United States, imports exceeded exports in 2004 by $61.7 billion, a record gap equal to 5.3% of gross domestic product. The U.S. trade deficit has swelled even furthering in the first nine months of this year compared with the corresponding period in 2004.” (Blustein, 1) Chinas trade surplus is expected to exceed a
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This note was uploaded on 10/18/2008 for the course HIST 151 taught by Professor Molena during the Spring '08 term at Kent State.

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In the united states - Trade Deficit Joseph A. Hrinda...

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