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  • Essay / The United States Trade Deficit - 613

    Introduction: Nowadays, almost every country is involved in international trade. To define basic knowledge about international trade, there are two important terms: trade surplus and trade deficit. Trade surplus occurs when the monetary amount of exports exceeds imports, and trade deficit occurs when trade imports exceed exports. The United States has been struggling with a trade deficit for years now, which has caused problems such as declining U.S. credit or less favorable trade conditions. This is a very complicated problem that may take time to resolve, but it is not something impossible to solve. One of the best solutions to solve these problems would be to increase public spending to support national goods. (solution not yet defined) Problems: To balance the trade deficit, the United States borrowed money from other countries, including its largest trading partner: China. It is possible to borrow money from many other countries, especially when countries like the United States are trusted by other countries. However, it is no longer the same as in the past. As a result, American creation...