US Trade Deficits



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Code : ITF0007

Year :
2004

Industry : General Business

Region : :USA

Teaching Note: Available

Structured Assignment : Not Available

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Abstract: By December 2003, the trade deficits of the US reached a record high of $490.8 billion, having major deficits with other countries China, Japan and Canada. The growing deficit has been a concern for American trade and commerce. The growing trade deficit has often been cited as proof of the unfair trade practices abroad or a lack of competitiveness among US industries. Economists view trade deficits as just a macroeconomic reality of investments flowing from abroad. However, the growing deficit has often been a point of discussion because of its cascading effect on the economy.

Pedagogical Objectives:

  • To discuss the underlying issues for the growing trade deficit of the US, especially with countries such as Japan and China
  • To discuss the consequences of a trade deficit

    Keywords : CUS trade deficits, Macroeconomics, US trade with China and Japan, US economy, Renmini peg to the dollar, Yen vs dollar, Yuan vs dollar, Productivity of Chinese labour, The Big Mac index, Monetary Policy Case Study, Current account deficit, Tariff barriers, US gross domestic product, Balance of payments, US imports and exports, Exchange rate

    Contents :
    THE US TRADE WITH CHINA
    THE US TRADE WITH JAPAN
    TRADE DEFICITS GOOD OR BAD?


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