Thursday, May 17, 2007

US Trade Deficit - Getting Better?

The article is discussing how American companies have been doing business abroad for a long time, and how it has never before been so important. A trade deficit is a large trade gap between America and foreign countries. The US trade deficit is likely to go down because a number of American workers have lost their jobs as companies moved more business overseas,so there is always the risk that the dollar could suddenly plunge and set off a global economic crisis.The kind of products that the US sells overseas are oil,vehicles, equipment and diesel engines,factory machinery, and construction and mining equipment. A weak dollar is actually providing a strong lift for the US economy and the trade deficit because t he exchange rate difference stokes profits from earnings generated abroad, countering the adverse effects on importers who must pay more and Americans traveling abroad with a less valuable currency in their wallets.

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