Thursday, May 17, 2007

US Trade Deficit: getting better?

Trade deficit is the negative balance of trade, or in other words known as the trade gap. The balance of trade is sometimes divided into a goods and a services balance. It is the ultimate opposite of trade surplus. The article written by the New York Times is discussing the trade deficit issue and money value in the United States. The American companies are making more money overseas and this is increasing the value of the American dollar. Some of the stores are spread out more across other countries than it is in the US such as McDonalds, KFC and other fast food chain restaurants. The cost of oil has increased as well. The value of the dollar can either break or make the US. Currently the European Euro has more worth than the current dollar, which is causing some problems, but work is being done to balance it out. Since most of our products are highly wanted in other countries our GDP increases with is as well.

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