U.S. Trade Deficit

Task: Explain what the US Trade Deficit is. Why did it go down in December 2007? What does the value of the US dollar have to do with the trade deficit falling? Why do you think that a large trade deficit is bad for the economy? In other words: why is it bad to import more goods than you export?

> The U.S. trade deficit is the difference between the cost of imports and the sales of exports that the U.S. has made rounded in billions of dollars and adjusted seasonally. The deficit fell in December of 2007 because the U.S. sold more exports and bought less imports. The reason behind the fall is that the U.S. dollar does not worth that much now and that means other countries will be after our low-price goods while our people will spend less on expensive overseas products. It is good for the economy of the US that it has a low trade deficit because if we imported more than we exported then we would be losing money.