Trade Deficit

Trade Deficit
An 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.


Investment dictionary. . 2012.

Look at other dictionaries:

  • trade deficit — ➔ deficit * * * trade deficit UK US noun [C, usually singular] (also trade gap) ECONOMICS, COMMERCE, FINANCE ► a situation in which the value of goods that a country imports is more than the value of goods it exports, or the size of this… …   Financial and business terms

  • trade deficit — trade .deficit also trade gap n the amount by which the value of what a country buys from abroad is more than the value of what it sells …   Dictionary of contemporary English

  • trade deficit — trade ,deficit noun count a situation where a country is buying more things from other countries than it is selling to other countries …   Usage of the words and phrases in modern English

  • trade deficit — ► NOUN ▪ the amount by which the cost of a country s imports exceeds the value of its exports …   English terms dictionary

  • trade deficit — noun an excess of imports over exports • Hypernyms: ↑deficit * * * noun, pl ⋯ cits [count] finance : a situation in which a country buys more from other countries than it sells to other countries : the amount of money by which a country s imports …   Useful english dictionary

  • trade deficit — UK / US noun [countable] Word forms trade deficit : singular trade deficit plural trade deficits economics a situation in which a country is buying more things from other countries than it is selling to them …   English dictionary

  • trade deficit — / treɪd ˌdefɪsɪt/ noun the difference in value between a country’s low exports and higher imports. Also called balance of payments deficit, trade gap …   Dictionary of banking and finance

  • trade deficit — noun A negative balance of trade. Ant: trade surplus …   Wiktionary

  • trade deficit — also trade gap noun (C) the amount by which the value of what a country buys from abroad is more than the value of what it sells …   Longman dictionary of contemporary English

  • trade-deficit — adjective noun …   Wiktionary

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