Monday, May 14, 2007

U.S. Trade Deficit: Getting Better?


The article from The New York Times is called 'Rising Exports Putting Dent In Trade Gap." The article states that many companies will rely heavily on generating more than half of their sales through foreign countries. A trade deficit is defined as a negative difference between the monetary value of exports and imports in an economy over a certain period of time. The U.S. trade deficit is likely to go down in the future because the United States is sending more American-made products to different countries across the world. Due to the weak dollar, Americans goods and services are more competitive in foreign markets. Some examples of products that America is sending all over the world are vehicles created by general Motors, KFC, diesel engines, factory machinery, earth-moving equipment and the digital components used to build a modern telecommunications backbone. A weak dollar can in fact be a good thing for the Untied States because it has became more expensive to buy for European countries.