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Trade Deficit Causes, Benefits and Costs

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What have been some major causes of the large U.S. trade deficits since 1992? What is a major benefit (you could address that issue) or a major cost (or, you could address that issue) associated with trade deficits?

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Solution Summary

Some causes of the U.S. Trade deficits are discussed.

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There are several major causes of the large U.S. trade deficits since 1992. One of them is the North America Free Trade Agreement, which made it easier for companies to trade products between countries. Other causes are low wages overseas, lack of manufacturing and safety standards overseas, high wages in U.S, high ...

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