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US Trade Deficits


Code : ITF0007

Year :

Industry : General Business

Region : :USA

Teaching Note: Available

Structured Assignment : Not Available

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THE US TRADE WITH CHINA The trade deficit with China for the month of October 2002, was $9,492.3 million and it increased to $13,565.5 million by October 2003 (Annexure III). Because of the continuous increase and its magnitude, the trade deficit with China assumed importance. Three out of four toys sold in the United States were foreign-made; about two-thirds of those imports were coming fromChina.6 The major goods exported by the US to China were machinery and transport equipments, crude materials, chemicals; the major imports from China were toys, apparels, office supplies, machinery, etc...

THE US TRADE WITH JAPAN Japan had been one of the active trade partners of the US. The US trade deficit with Japan was at $4,729.2million, for themonth of January 2002 and it increased to $6,436.6million for the month of October 2003 (Annexure VII). Major imports from Japan were transport equipments particularly cars.14 The US exports to Japan weremostly in the formofmachinery andmanufactured articles...

TRADE DEFICITS GOOD OR BAD? Because of its role as amajor cause of the current account deficit, trade deficit had been one of the important concerns of theworld economy. IMF said, theUnited States cannot live beyond its long-termmeans forever, nor will U.S. assets always be so favored by global investors...

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