Question

define trade deficit​

Answer 1

Answer:

A trade deficit occurs when a nation imports more than it exports. ... (The deficit in goods, at $891 billion, is higher than the overall deficit, since a portion of the goods deficit is offset by the surplus in services trade.)

Explanation:

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Answer 2

When exports are higher than the country's import, then it is Trade deficit

• Trade deficit is the situation where a country's export is higher than its import.
• This happens  when the country relies more on foreign goods and exports a very less amount of its own goods.
• It can be taken as a short term and long term trade deficit.
• In short term deficit, it actually becomes advantageous for the country. They could consume more goods from the foreign countries and reduce their domestic production.
• But in the long term, it will be a great disaster for the country. When a country keeps on borrowing goods from its exports, it lead to a high payment problem.
• Trade deficit is beneficial only for those countries whose economic situation is unstable and facing a crisis.
• But countries with good growth potential facing a trade deficit may lead them to a Balance of Payment crisis.

Overall, the economic situation can not be predicted during uncertainties. There should be a control line upon which decision should be taken.