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It is important to note that, despite the fact that U.S. trade deficit has sometimes been associated with low U.S. products and services competitiveness on global markets, this is most likely not the case. According to some critics, this would lead to decreases in export level, encouraging greater levels for the trade deficit. However, the industrial production has surged in the last decades, as well as the exported services in the global markets (American service providers are important players on the market), so we cannot consider a decrease in competitiveness as a cause for increased U.S. trade deficits.
Without proper financial and macroeconomic policies, we are not likely to see any changes in the U.S. trade account in the near future. Despite a devaluated dollar all throughout 2007 and good parts of 2006, the trade account deficit has remained an important problem of the U.S. administration.
Bibliography
1. Griswold, Daniel. The Causes and Consequences of the U.S. Trade Deficit. Testimonybefore the Senate Finance Committee Washington, DC June 11, 1998. On the Internet...
Elwell Craig. The U.S. Trade Deficit: Causes, Consequences, and Cures. Congressional Research Service " the Library of Congress. August 2004. On the Internet at http://astro.temple.edu/~alistair/CRSTRADEDEFICIT.pdf.Last retrieved on June 29, 2007
3. Blecker, Robert. The Causes of the U.S. Trade Deficit. Trade Deficit Review Commission Washington, DC. August 1999. On the Internet at http://www.american.edu/academic.depts/cas/econ/faculty/blecker/statement%20of%200899.pdf.Last retrieved on June 29, 2007
Griswold, Daniel. The Causes and Consequences of the U.S. Trade Deficit. Testimonybefore the Senate Finance Committee Washington, DC June 11, 1998. On the Internet at http://www.cato.org/testimony/ct-dg061198.html.Last retrieved on June 29, 2007
Elwell Craig. The U.S. Trade Deficit: Causes, Consequences, and Cures. Congressional Research Service " the Library of Congress. August 2004. On the Internet at http://astro.temple.edu/~alistair/CRSTRADEDEFICIT.pdf.Last retrieved on June 29, 2007
S. economy, causing job losses that reach into the most technologically advanced industries in the manufacturing sector and affect every state, according to a January 11 press release by the U.S.-China Economic and Security Review Commission" (U.S. Info State Government, 2005). Also, these job losses not only negatively impact the population, but they also affect the business community. With fewer workers and resources, American companies will no longer be able
4 trillion to about $5 trillion dollars at the end of 2008 to support a rise in U.S. net external debt from $3.3 trillion to $7.4 trillion. (Ibid. 6) Continued financing of the U.S. trade deficits by the rest of the world is also not without its long-term problems: the U.S. would accumulate so much debt over time that the ultimate cost of adjustment would become too high for the
He states that changes international capital flows have been the primary consequence of increased deficits and likens this to direct competition between the U.S. Treasury and the U.S. exporting industry. He reasons that the flow of foreign funds into the Treasury prevents these funds from being available for foreign purchase of U.S. goods and services. Thus, the more our government borrows and finances with foreign funds, the more our
The goods deficit with the European Union increased from $6.4 billion in September to $11.9 billion in October; the goods deficit with Japan increased from $6.2 billion in September to $8.0 billion in October; and the goods deficit with China increased from $23.8 billion in September to $25.9 billion in October. Which product groups had the largest increases in exports? The September to October export of goods increase resulted from increases
U.S. Balance of Payments The United States balance of payments is an overall statement of all economic transactions between the U.S. And all other countries over a year's times (Oxford, 2002). A table of the balance of payments shows the amount of money received from other parts of the world and the amount spent abroad. These transactions are measured in terms of receipts and payments. In the U.S., a receipt represents money
Since Chinese exports to the United States were six times greater than America's exports to China in 2006, it was a clear reflection of America's most imbalanced trading relationship. The debate on whether or not the United States should trade with China began in the early 1990s when America's economy was much healthier and Chinese exports to the United States were smaller. In the recent years, this debate has risen