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Trade deficits can impact a country's economy from "summary" of International Economics by Robert Carbaugh
A trade deficit occurs when a country imports more goods and services than it exports. This imbalance can have significant consequences for the economy of a nation. When a country runs a trade deficit, it means that it is spending more money on imports than it is earning from exports. This can lead to a decrease in the country's overall wealth and a drain on its resources. One of the main impacts of a trade deficit is the loss of jobs in the domestic economy. When a country imports more than it exports, it means that domestic industries are not able to compete effectively with foreign producers. This can lead to layoffs and closures of businesses, particularly in sectors that are heavily reliant on international trade. Additionally,...
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