What is the current U.S. trade balance?
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What is the current U.S. trade balance?
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Questions for Discussion:
1. What is the current U.S. trade balance?
2. You have just read arguments for and against sustaining a trade deficit—which do you find more persuasiveand why? Does your answer change depending on the country you think about (i.e. would you give one answer for the United States, another for Japan, and another for Peru?).
3. What is the relationship between trade deficits and the potential for financial crises?
4. How can trade deficits have a positive economic effect in a country? Again, does a state’s ability to sustain trade deficits depend on the size and/or strength of its economy?
