The USA has been running a negative trade balance roughly since the mid-1980s. 1. How this affected the Current account? Where does this extra money come from? 2. Is this an international risky situation? What are the implications?
Added by Don H.
Step 1
A negative trade balance, also known as a trade deficit, means that the country is importing more goods and services than it is exporting. This impacts the current account by increasing the current account deficit. The extra money to finance this deficit typically Show more…
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