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This 5-page paper answers certain questions about economics, United States economic issues and product rollout via the Internet. Bibliography lists 9 sources.
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5 pages (~225 words per page)
File: D0_MTinbusque.rtf
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has caused the U.S. run a merchandise trade deficit year after year since the early 1980s? Before answering this, it would first be helpful to define what, exactly, this means.
A merchandise trade deficit occurs when a country ends up importing more than it exports (Bates, 2000). Since the 1980s, the United States has been doing just that -- in
the late 1990s, for example, the deficit for trade in goods and services was $193 billion, equaling 2.1% of the GDP (Bates, 2000).
Is the current account a deficit problem? Explain. While on the surface, the merchandise trade deficit could seem alarming, Bates (2000) and others try to put it
into perspective. For one thing, the MTD is considered a fairly narrow measurement, as it refers solely to trade in goods (Bates, 2000). Furthermore, knee-jerk reactions such as tariff barriers
or quotas wont do much to reduce the issue (Bates, 2000). Instead, trade restrictions could provoke retaliation from trading partners (Bates, 2000).
In addition, a better measurement is called the Deficit in Goods and Services, which focuses on import/exports of goods AND services (Bates, 2000). The reason why this is more important
is because the U.S. is becoming a service-oriented economy -- while the country is certainly a net importer of goods, its exporting services at a very rapid rate (Bates, 2000).
Is the trend of the international investment position of the U.S. problematic? Why or why not? A countrys international investment
position (or IIP) discusses that countrys composition of external financial assets and liabilities. Its als an important indication of a countrys balance of payments. According to the Bureau of Economic
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