what is trade deficit ?

Question

i found ...

"The trade deficit in the month of march 1999 was $3.5 billion"

what is trade deficit ?
How it is calculated ?

Please provide an example

Answer 1

All the country sells- all the country buys. If it is negative,´the country is buying more than selling and you have a trade deficit. In the example you gave, the country bought 2.5 bi USd more than it sold during march 1999. Make sure that the information is not the accumulated trade deficit, which is the sum over a long period, say a year.

Answer 2

The trade deficit is the difference between how much a country's total imports and total exports in a given period. When the imports are higher then the exports, the difference is a deficit. It is expressed in Dollars.
In your example in March 1999 the country imported for US$ 3.4 billion more than it exported.
If one looks at only one product and not at totals, an example would be that the US has a trade deficit in oil, because it imports more than it exports.

Answer 3

A trade deficit is when a nation imports more goods than it exports. It is rated overall and by specific country

America's trade deficit with Canada last year was a record high $54.4 billion. The United States trade imbalance with Mexico also was a record high of $40.6 billion trade last year. But the trade gap with Japan of $66 billion in 2003 was the lowest since 1998.

Answer 4

The trade balance is the difference between the value of all the goods and services exported and the value of all the goods and services imported. The trade balance is in deficit when the imports exceed the exports.

Answer 5

Its an inequality of money.

Its like saying that 10 billion of goods were bought from America by the world, but 13.5 billion of goods were bought from the world by America.

The problem with that is that HUGE loans are taken out from the world bank to pay for the difference. The trade defecit and the national debt are different symptoms of the same problem. 1/3 of the trade defecit is due to oil.. gasoline. Americans and their cars. :(

Answer 6

Exports - imports. Since imports are higher, this is a negative number, or deficit.

Answer 7

wen the imported goods outweigh more than the exported good in a country we say that its suffering a trade deficit.
i dnt know of any examples, i just told u everything i learnt last years in school i hope it helped!!