Trade Deficits
Not what you're looking for?
The United States has been operating on a trade deficit over three decades because Americans tend to buy more imports instead of domestically produced goods. Do you think Americans should continue this pattern? Why, or why not? Explain your rationale.
Purchase this Solution
Solution Summary
There are different perspectives regarding trade deficits. But the overriding one is the consumer's. Trade deficits are not a bad thing if ultimately domestic consumer's can buy cheaper imports and thus have more money for savings and domestic investment.
Solution Preview
This is an interesting question that can be answered from different perspectives.
The reason for trade deficits is that for some goods, other countries are producing higher priced goods cheaper, and/or better and/or faster (i,e, more efficiently) than the U.S. This is called sectoral comparative advantage. i.e. In certain sectors of the economy, other countries are able to provide either higher quality or less expensive goods(e.g. automobiles, computers, cell-phones) that consumers value. Now your question is "should" Americans continue this pattern? From the American ...
Purchase this Solution
Free BrainMass Quizzes
Six Sigma for Process Improvement
A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.
Business Ethics Awareness Strategy
This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.
Learning Lean
This quiz will help you understand the basic concepts of Lean.
Balance Sheet
The Fundamental Classified Balance Sheet. What to know to make it easy.
SWOT
This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.