What Is Trade Deficit?

  NDBS Reader

Posted: November 19 2012

  NDBS Answers:

Trade deficit is when economic measure of a negative balance of trade in which a country's imports exceeds its exports. A trade deficit represents an outflow of domestic currency to foreign markets.  Economic theory dictates that a trade deficit is not necessarily a bad situation because it often corrects itself over time. However, a deficit has been reported and growing in the United States for the past few decades, which has some economists worried. This means that large amounts of the U.S. dollar are being held by foreign nations, which may decide to sell at any time.   A large increase in dollar sales can drive the value of the currency down, making it more costly to purchase imports.


  Can a country get out of recession by printing more money? 

Selwin - Namibia

Posted: October 20 2012

  NDBS Answers:

If a country  prints more money, the retailers or places where the money is suppose to be spent will increase their prices and lead to inflation where the price of goods rise above the earnings.  And the money in each country must be attached to the production of goods and rendering of services which will tell how the economy is growing or going down.  If production becomes more there will be jobs for people and the companies will employ more people who will earn money than having money made available.  





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