USA Trade Defecit

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: USA TRADE DEFICIT

The trade deficit in the United States of America has been experienced since 1976

For the last 40yrs . Trade has grown to be a big part of the United States economy . The rise

in influence of trade in the economy has grown from as low as 3 of GDP in 1960 to over

25 in 2007 (Roberts ,

.C .36-61

This evident increase in importance of trade to the economy has increased the dependence p

of the united states to the rest of the world

The trade deficit has recently become a major concern to the treasury of the United States

due the dire world economic recession . The recession has reduced individual 's

purchasing power around the world therefore reducing demand for America 's relatively

expensive products compared to other products from the Asian markets which are

significantly cheaper

The above facts are irrespective of the fact that America is the world 's biggest

producer providing 21 of the world 's products , 70 more than china which is the main

competitor . In relation to this competition with china , America is performing dangerously

short of its potential . Even with greater production , America 's trade with china has left

America with a trade deficit of 256 .3 billion dollars since it exports goods worth 65 .2

billion dollars while it imports 340 billion dollars worth of goods from China

However , the recent world economic recession has significantly reduced America 's

trade deficit...