I'm having trouble articulating it simply...thanks!
2007-02-23 04:32:26 · 2 answers · asked by Anonymous in Social Science ➔ Economics
It is when you spend more buying products and services from other countries than you earn selling goods and services to them.
2007-02-23 04:41:00 · answer #1 · answered by MSDC 4 · 4⤊ 0⤋
MSDC got it right.
The whole point of trade is to export domestic products (aka sell your countries' goods to other countries so that you help local market). The other side of trade is importing foreign goods (buying the products of other countries to meet local demand, because at home, it's expensive or it could never be obtained)
Therefore a trade deficit is a failure to do the first one (sell local goods to other countries) and you're doing more of the second (buying from others)
2007-02-24 00:04:58 · answer #2 · answered by sunsetconmartini 2 · 0⤊ 0⤋