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Simple English definitions for legal terms
trade deficit
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A quick definition of trade deficit:
A trade deficit occurs when a country imports more goods and services than it exports. This means that the country is spending more money on buying goods from other countries than it is earning from selling its own goods to other countries. It can lead to a decrease in the value of a country's currency and can have an impact on its economy.
A more thorough explanation:
A trade deficit occurs when a country imports more goods and services than it exports. In other words, it means that a country is buying more from other countries than it is selling to them.
For example, if the United States imports $500 billion worth of goods and services from China, but only exports $200 billion worth of goods and services to China, then the United States has a trade deficit with China of $300 billion.
This can be a concern for some countries because it means that they are spending more money on imports than they are earning from exports. It can also lead to a decrease in jobs in certain industries as companies may choose to import goods from other countries instead of producing them domestically.