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This paper will analyze the current position of the trade deficit and some of the factors that have caused the gap to expand.
Trade Gap Defies Expectations
Introduction
Most economist view trade as an integral part of the free market system. "Trade allows specialization and division of labor and thereby promotes technological growth" (Colander, 2004, p. 414). The United States economy is currently running a trade deficit, an excess of imports over exports. This shortage is currently being financed by the selling of assets such as stocks, bonds, and real estate. The balance of trade has been in a deficit position since the 1970s and will probably continue in this direction for quite some time, "since the assets of the United States total many trillions of dollars" (Colander, 2004, p...
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Common topics in this essay:
- A Trade War With China?
- Analysis Of The Us-China Trade
- China Imports
- China Trade Surplus
- China and the World Trade Organization
- Details of China trade agreement signing revealed
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