US recession and reduction of US trade deficit

Related BrainMass Solutions

• Trade Deficits and Trade Surpluses: Their Effect to Economy

  The value of a country's currency also affects the trade deficit or surplus as when currency is weak; there is an increase of trade deficit and reduction of trade surplus.

• Issues involved with pegging or floating the yuan to US dollar

  As per Labonte & Morrison (2010), there exists a direct link between trade deficit and recession in jobs.

• US Trade Deficit Scenarios

  US trade deficit is one of the focal areas.

• Current Fiscal Deficit of US

  This current fiscal deficit would result in high interest rates, US recession, more declines in US households' living standards and lethal damages to the global economy.

• Open market operations

  In other words if there a trade deficit and that adversely affects the current account balance the US dollar value will decrease. References: economics.about.com/cs/money/l/aa022703g.htm www.investopedia.com ?

• Current Account Deficit run by the U.S.

  They could also lead to a disruption of US trade policy, threatening the openness of the global trading system. Perhaps the most efficient way to raise national saving and shrink the external deficit would be to remove biases in the US tax code.

• US and China: An International Trade Analysis

  With regards to failing GDP, it can be observed that there was a very significant reduction of US GDP growth starting in 2005 (a figure of 6.49%) to a negative GDP of -2.47% in 2009.

• U.S. Goverment Financing/Balance of Payments

  Merchandise Trade Deficit refers only to trade in goods. Even though goods account for about 70 percent of US exports and 84 percent of US imports, merchandise trade balance gives us a partial picture of the entire trade deficit.

• relationship between the current account and budget deficits

  As Americans consume and invest less, demand for imports and foreign capital falls along with the trade deficit. That explains why the smallest U.S. trade deficit since the early 1980s occurred in 1991, in the midst of the most recent recession.