Question

trade deficit is always a great cause of worry for in economy class 12th true or false​

Answer 1

Answer:

False

Explanation:

Because trade deficit are not always harmful because they can result from beneficial foreign investment and alleviate temporary shortage

Answer 2

This is False since a trade deficit is not always a case of worry since it causes an imbalance in the savings of the country and its rate of investment. The foreign lending and investments can helps in finding a solution for the situation

Explanation:

• A situation of trade deficit occurs when the imports of a country are more than its exports during a certain period of time. It could be for a short time or long period.
• It leads to negative balance of trading for the period. The situation  of trade deficit take place when the country is not able produce the goods due to number of reasons  or it could also be due to the want of buying it from  another country.
• The countries' economic growth and stability are affected if the country experiences trade deficit for a long duration.

To know more about trade deficit

Difference between balance of payment deficit and trade trade deficit

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