This, in turn, further stimulates a massive intake of products and services, widening the trade deficit.
It is important to note that, despite the fact that U.S. trade deficit has sometimes been associated with low U.S. products and services competitiveness on global markets, this is most likely not the case. According to some critics, this would lead to decreases in export level, encouraging greater levels for the trade deficit. However, the industrial production has surged in the last decades, as well as the exported services in the global markets (American service providers are important players on the market), so we cannot consider a decrease in competitiveness as a cause for increased U.S. trade deficits.

Without proper financial and macroeconomic policies, we are not likely to see any changes in the U.S. trade account in the near future. Despite a devaluated dollar all throughout 2007 and good parts of 2006, the trade…...

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Bibliography

1. Griswold, Daniel. The Causes and Consequences of the U.S. Trade Deficit. Testimonybefore the Senate Finance Committee Washington, DC June 11, 1998. On the Internet at   retrieved on June 29, 2007http://www.cato.org/testimony/ct-dg061198.html.Last 

2. Elwell Craig. The U.S. Trade Deficit: Causes, Consequences, and Cures. Congressional Research Service " the Library of Congress. August 2004. On the Internet at   retrieved on June 29, 2007http://astro.temple.edu/~alistair/CRSTRADEDEFICIT.pdf.Last 

3. Blecker, Robert. The Causes of the U.S. Trade Deficit. Trade Deficit Review Commission Washington, DC. August 1999. On the Internet at retrieved on June 29, 2007http://www.american.edu/academic.depts/cas/econ/faculty/blecker/statement%20of%200899.pdf.Last

Griswold, Daniel. The Causes and Consequences of the U.S. Trade Deficit. Testimonybefore the Senate Finance Committee Washington, DC June 11, 1998. On the Internet at

Economics
One of the current economic issues in America is the trade deficit, which is persistent and in most years growing. The U.S. had a slight trade surplus in the early 1980s, but since then has had a trade deficit. The deficit was growing through the mid-2000s and while it is still quite large, the straight downward trend in the trade deficit has flatlined (Trading Economics, 2014). The U.S. still has the world's largest current account deficit -- by a factor of nearly four (CIA World Factbook, 2014). Petroleum products account for a substantial portion of this, as much as 10%, but the development of fracking has reduced the percentage that oil contributes to the trade deficit, and has helped the trade deficit to flatline (U.S. Census Bureau, 2014). The major import partners are China (19%), Canada (14.1%), Mexico (12%) and Japan (6.4%). Of these, Canada and Mexico are not major…...

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References

Amadeo, K. (2014). Trade deficit: Definition, causes, effects, role in BoP. About.com. Retrieved November 30, 2014 from  http://useconomy.about.com/od/glossary/g/Trade_Deficit.htm 

CIA World Factbook: United States. (2014). Retrieved November 30, 2014 from  https://www.cia.gov/library/publications/the-world-factbook/geos/us.html 

FRB SF. (2007). Is the U.S. trade deficit a problem? What is the link between the trade deficit and exchange rates? Federal Reserve Bank of San Francisco. Retrieved November 30, 2014 from  http://www.frbsf.org/education/publications/doctor-econ/2007/june/trade-deficit-exchange-rate 

Trading Economics. (2014). United States balance of trade. TradingEconomics. Retrieved November 30, 2014 from http://www.tradingeconomics.com/united-states/balance-of-trade

S. economy, causing job losses that reach into the most technologically advanced industries in the manufacturing sector and affect every state, according to a January 11 press release by the U.S.-China Economic and Security eview Commission" (U.S. Info State Government, 2005). Also, these job losses not only negatively impact the population, but they also affect the business community. With fewer workers and resources, American companies will no longer be able to compete against foreign organizations. "A high percentage of the layoffs are as a direct result of competition from foreign companies. Eventually, as more and more money leaves the U.S., our businesses will be powerless to prevent further such activity" (American Economic Alert, 2008).
eferences

American Economic Alert, 2008, Trade Ticker - the Up-to-the-Second Counter for the U.S. Trade Deficit, http://www.americaneconomicalert.org/ticker_home.asp, last accessed on February 8, 2008

Bater, J., June 13, 2005, Trade Deficit Widens as Prices ise for Oil and Other Imports,…...

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References

American Economic Alert, 2008, Trade Ticker - the Up-to-the-Second Counter for the U.S. Trade Deficit,   last accessed on February 8, 2008http://www.americaneconomicalert.org/ticker_home.asp ,

Bater, J., June 13, 2005, Trade Deficit Widens as Prices Rise for Oil and Other Imports, the Wall Street Journal

Central Intelligence Agency, 2008, the World Factbook - United States,   last accessed on February 8, 2008https://www.cia.gov/library/publications/the-world-factbook/geos/us.html ,

Griswold, D.T., 1998, the Causes and Consequences of the U.S. Trade Deficit, the Cato Institute,   accessed on February 8, 2008http://www.cato.org/testimony/ct-dg061198.htmllast 

S. deficit in ATPs in 2004.
In 2004, the U.S. borrowed $665 billion annually from foreign lenders to finance its enormous trade deficit, an amount equivalent to $5,500 per American household (ivens, 2004). This borrowing entails serious consequences for the U.S. economy that have thus far been subdued by low interest rates. However, if the deficit follows current trends, ivens projects that the external debt of the U.S. will rise from 24% of total GDP at the end of 2003 to 64% by 2014 and the cost of servicing just the additional debt incurred from 2004 to 2014 will rise to 1.7% of GDP by 2014 or $250 billion in 2004 dollars. These numbers translate into a painful reduction in the future living standards of American households.

ibliography

ivens, L.J.(2004, December 14). Debt and the dollar the United States damages future living standards by borrowing itself into a deceptively deep hole. Retrieved July…...

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Bibliography

Bivens, L.J.(2004, December 14). Debt and the dollar the United States damages future living standards by borrowing itself into a deceptively deep hole. Retrieved July 11, 2005 from Web site:  http://www.epinet.org/content.cfm/Issuebrief203 

Odessey, B. (2005, February 10). U.S. trade deficit drops in December but hits record for 2004. Retrieved July 11, 2005 from Web site: http://hongkong.usconsulate.gov/usinfo/statis/ft/2004/12.htm

Soaring high-tech and other imports from China, sharply higher oil prices drive trade deficit to new record (2005, February 10). Economic Policy Institute. Retrieved July 11, 2005 from Web site:  http://www.epi.org/content.cfm/webfeatures_econindicators_tradepict20050210

Earlier studies based on Bretton oods data were only refuted because the data sets of the later studies were insufficiently long. It may be, therefore, that Himarios is one of many that will now be able to demonstrate that long-term equilibrium is possible. It may that it requires nearly at least three decades' worth of data and a multi-country study in order to see the equilibrium emerge, meaning that previous theories were simply not taking into consideration the time frames that would be required for production, wage and policy shifts to be implemented and have their impact on a nation's balance of trade.
Himarios' findings do suggest that externalities cannot be maintained. hile a single government can maintain consistent economic policy for decades seemingly regardless of the consequences (Cuba or North Korea, for example) a free economy cannot. Eventually a trade deficit will result in a workforce demanding jobs, for…...

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Works Cited:

Ahmad, J. & Yang, J. (2004). Estimation of the J-curve in China. East-West Center Working Paper. No. 67, 2004. Retrieved March 31, 2010 from  https://scholarspace.manoa.hawaii.edu/bitstream/10125/3706/1/ECONwp067.pdf 

Akbostanci, E. (2002). Dynamics of trade balance: The Turkish J-Curve. Economic Research Center. Retrieved March 31, 2010 from  http://www.erc.metu.edu.tr/menu/series02/0205.pdf 

Backus, D., Kehoe, P., Kydland, F. (1994). Dynamics of trade balance and the terms of trade: The J-curve? The American Economic Review. Vol. 84 (1) 84-103.

Bahmani-Oskooee, M. & Niroomand, F. (1998). Long-run price elasticities and the Marshall-Lerner condition revisited. Economics Letters. Vol. 61 (1) 101-109

Trade between the United States and Japan [...] trade between the United States and Japan, such as exports and imports of goods, exports and imports of services, tourism, and investments. Japan and the United States are two of the premier forces in trade around the world. The two countries depend heavily on each other in a variety of trade areas, from electronics to tourism and banking. Together, they form a formidable bond of trade that dominates the world market and the world economy.
In 2002, Japan's total foreign trade was 52,109 billion yen. The portion they traded with the United States was 14,873 billion yen, or 28% of the country's total foreign trade ("Yearbook," 2003). Conversely, the United States only trades about 9% of their foreign trade with Japan, so there has been a deficit between the two countries for many years. This seems odd since Japan is a smaller…...

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References

Editors. (2004). Third report to the leaders on the U.S.-Japan regulatory reform and competition policy initiative. Retrieved from the United States Trade Representative Web site:   June 2004.http://www.ustr.gov/regions/japan/2004-06-08-japan-factsheet.pdf18 

Editors. (2003). Japan statistical yearbook. Retrieved from the Japan Statistics Bureau Web site: June 2004.http://www.stat.go.jp/english/data/nenkan/index.htm18

S. inflation in check, even during economic boom times.
Cultural Values

The debate about increasing protectionism in the U.S. boils down to a clash of cultural values. In the natural course of international trade, there will be those who suffer and those who benefit. International markets are amoral. Trade is conducted between nations with the intent of raising the standard of living for both, but this is on aggregate, not universally. As a result, jobs losses in some sectors, particularly those where the U.S. does not have comparative advantage, are inevitable. To enact protectionist measures to stem those job losses will have three negative impacts.

The first is retaliatory trade measures. Tariffs and other protectionist measures tend to go hand in hand. If a country protects its industries, nations that trade with that country will do the same. This is the classic Smoot-Hawley scenario. To protect American jobs during the Depression, the Smooth-Hawley…...

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Works Cited:

No author. (2009). Top ten countries with which the U.S. trades. Census.gov. Retrieved December 6, 2009 from  http://www.census.gov/foreign-trade/top/dst/current/balance.html 

No author. (2007). David Ricardo and comparative advantage. NetMBA.com. Retrieved December 6, 2009 from  http://www.netmba.com/econ/micro/comparative-advantage/ 

US Department of State. (no date). Protectionism in the interwar period. U.S. Department of State. Retrieved December 6, 2009 from  http://www.state.gov/r/pa/ho/time/id/17606.htm 

Evenett, S. (2009). The G20's assault on world trade. VOX. Retrieved December 6, 2009 from  http://www.voxeu.org/index.php?q=node/4008

Reflection Paper – International Trade
There has been a lot of talk lately about NAFTA being put at risk – either the US wanting to pull out of the deal or to significantly re-negotiate its terms. Industries that either benefit from NAFTA or feel that they do not benefit are lining up to express their positions – the latest being the auto industry, which has generally benefited significantly from NAFTA's country of origin rules
(Shepardson, 2018).

This discussion makes one reflect on the objectives of trade policy in general. The entire point of trade policy is to expand the economy by leveraging comparative advantages. While there are high profile instances where Mexico has comparative advantage, and has therefore won some trade away from the United States, the US has the most number of products in which it has a comparative advantage, with Mexico the least (Mzumara, Chingarande & Karambakuwa, 2012). The authors note,…...

4 trillion to about $5 trillion dollars at the end of 2008 to support a rise in U.S. net external debt from $3.3 trillion to $7.4 trillion. (Ibid. 6) Continued financing of the U.S. trade deficits by the rest of the world is also not without its long-term problems: the U.S. would accumulate so much debt over time that the ultimate cost of adjustment would become too high for the U.S. economy. Hence, all indicators regarding the sustainability of the U.S. trade deficit are blinking red, despite the brave face that the Bush administration puts on the issue.
Is China the Source of the Deficit Problem?

The U.S. administration believes that the alleged under-valuation of the Chinese Yuan is the source of its deficit problems since there is a huge and growing trade imbalance between the U.S. exports and imports to China. The U.S. Senate recently passed a bill, threatening to slap…...

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References

Balance of Trade." (2005). [Online]. Wikipedia the Free Encyclopedia. Available from:   April 2005]http://en.wikipedia.org/wiki/Trade_deficit [19

Beck, B. (12 April 2005). "It's more than the deficit, stupid!" [Online]. Political gateway. Available from: April 2005]http://www.politicalgateway.com/main/columns/read.html?col=334[19

Cock-a-doodle-doo" (3 Feb 2005). [Online]. The Economist. Available from: April 2005]http://internationalecon.com/MyCourses/News%20Stories/Economist_com%20%20China's%20exchange%20rate.htm[19

Mann, C.L. (1999). Is the U.S. Trade Deficit Sustainable? Washington D.C: Institute for International Economics

The depreciating dollar improves the price competitiveness of U.S. exports in the foreign market thus reducing the deficit in the balance of trade. Dollar depreciation has a quicker and stronger impact to the exports than it has to the imports.
The slow effect of depreciating dollar on the trade balance resulted from import volumes increase. The U.S. imports were decreased in response to exchange rates with a dollar depreciating slowing the growth. The rapid shift of trade towards low cost emerging economies continues to corrode U.S. price competitiveness, which would improve the depreciating dollar. The consistence increase in oil prices also acted as a main contributor to the increased depreciation of dollar. This lead to commodity inflation affecting people's lives directly. U.S. enjoyed a period of better economic growth in year 2006 boosting the imports. This helped in increasing the value of the dollar restoring a better economy to the…...

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References

The World Economic Forum in its 2010 Global Competitiveness Report ranks the United States as the fourth most competitive economy in the world and the United States has been at or near the top of this ranking since it began in 1979,  http://www3.weforum.org/docs/WEF_GlobalCompetitivenessReport_2010-11.pd 

China Daily, October 28, 2010, "China's Twelfth Five-Year Plan signifies a new phase in growth,"   and Martin Feldstein, "The End of China's Surplus, Project Syndicate, January 28, 2011,  http://www.project-syndicate.org/commentary/feldstein32/English .http://www.chinadaily.com.cn/bizchina/2010-10/27/content_11463985.htm 

Elgin & David, 2011. Social science an Introduction to the Study of the Society. 14th Edition. Allyn and Bacon Publishers. ISBN-13: 978-0-205-70271-8.

For the period of the late 1960s and early 1970s, West Germany strived to assist the dollar. The United States and many other nations pushed West Germany to reassess so as to make up for the dollar excess. (Germany in the World Economy)
At last, after escalating waves of conjectures, the retton Woods system had a collapse in August 1971. All through the post-retton Woods period, the deutsche mark stayed under pressure. In order to relieve strain within Europe, West Germany and other European states assented to peg their currencies to a special system of comparatively narrow exchange rate bands officially named the 'European narrow-margins agreement' but unofficially identified as the 'snake'. The United States and West Germany performed main roles in attempting to organize a new global monetary system. but, in spite of its willingness to make small exchange-rate alterations for the benefit of new currency arrangements, West Germany…...

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Bibliography

Little German Reform Would Go a Long Way" (Dec 1, 2003) Business Week. Issue: 3860; pg. 22. Retrieved from home.uchicago.edu/~gbecker / Businessweek/BW/2003/12_01_2003.pdf Accessed on 24 November, 2004

Economic Survey - Germany 2004: Main issues and policy challenges"

Retrieved at   Accessed on 24 November, 2004http://www.oecd.org/document/17/0,2340,en_2649_201185_33633425_1_1_1_1,00.html .

Economy of Germany" Wikipedia, the free encyclopedia. Retrieved at   on 25 November, 2004http://en.wikipedia.org/wiki/Economy_of_GermanyAccessed 

Brexit and British Trade: Advantages and Difficulties
In June 2016, the UK voted to leave the European Union (EU). Commonly called "Brexit," the decision has raised a number of questions regarding Britain's current trading arrangements as well as possibilities and obstacles that await the UK post-EU (Hatzigeorgiou, Lodefalk, 2016). From a trade theory and policy perspective, this paper will assess the UK's current trading arrangements along with the potential advantages and difficulties it will likely face as a result of being outside the EU.

From a mercantilist trade theory perspective, Britain's current trading arrangements are based on what is good for the EU member states (Britain formerly being one of them). It is less protectionist from a nationalist point of view and the idea that a country might import less than it exports and thereby have a trade surplus. In the EU, the UK had a 24 billion pound trade deficit at…...

Since Chinese exports to the United States were six times greater than America's exports to China in 2006, it was a clear reflection of America's most imbalanced trading relationship. The debate on whether or not the United States should trade with China began in the early 1990s when America's economy was much healthier and Chinese exports to the United States were smaller. In the recent years, this debate has risen to include concerns on whether China's trade policies are resulting in the transference and loss of many U.S. jobs.

Reasons hy the U.S. Should Not Trade with China:

Given the concern by policymakers and the entire American public, the United States should not trade with China because of various reasons which have a huge impact on the American population. These reasons include:

Trade Imbalance:

As mentioned earlier, this is one of the reasons why the United States should not trade with China since it…...

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Works Cited:

Morrison, Wayne M. "China-U.S. Trade Issues." Federation of American Scientists. Federation of American Scientists, 1 July 2005. Web. 13 May 2011. .

Scott, Robert E. "Costly Trade With China: Millions of U.S. Jobs Displaced with Net Job Loss in Every State." Economic Policy Institute: Research and Ideas for Shared Prosperity. Economic Policy Institute, 9 Oct. 2007. Web. 13 May 2011. .

Trumbull, Mark. "How Much Does U.S.-China Trade Hurt American Workers? Slowly, a Clearer Picture." The Christian Science Monitor. The Christian Science Monitor, 10 May 2011. Web. 13 May 2011. .

Note: current prices values are expressed in AUD billion.

Australia's Trade Situation

In the June quarter 2007, Australia's exports of goods and services increased by 0.5%, reaching the value of $54.6 billion. This increase follows a series of increases, as for the 2006-2007 financial year, exports increased by 10%, reaching $216 billion. egarding the volume of Australia's exports of goods and services, it increased by 0.8% in the June quarter of 2007, while for the 2006-2007 financial year, increased by 4%. The index of prices received for exports did not have an ascending evolution, since it decreased by 0.3% in the June quarter 2007. However, in the 2006-2007 financial year, export prices increased up to 6% (DFAT, 2007).

egarding rural goods, their exports fell 0.7% reaching $25.1 billion. The rural goods exports volumes fell 4% to 24.4 billion. The evolution of specific rural goods was the following: meat and meat preparations exports fell…...

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Reference List

Australia (2007). Central Intelligence Agency. The World Factbook. Retrieved December 7, 2007 from  https://www.cia.gov/library/publications/the-world-factbook/geos/as.html#Econ .

Calleya, Peter (2007). The Australian and New Zealand Dollar. Times of Malta. Retrieved December 7, 2007 at  http://www.timesofmalta.com/articles/view/20071111/business/the-australian-and-new-zealand-dollar .

Financial Stability Review (2007). Reserve Bank of Australia. Retrieved December 7, 2007 at  http://www.rba.gov.au/PublicationsAndResearch/FinancialStabilityReview/index.html .

Stevens, Glenn (2007). Economic Conditions and Prospects. Address to the QUT Business Leaders' Forum Brisbane. Reserve Bank of Australia. Retrieved December 7, 2007 at  http://www.rba.gov.au/Speeches/2007/sp_gov_140607.html .

S. markets are listed as being:
Import Licensing

Services arriers

Also is concern in the presence of the government in the telecommunications market sector. U.S. exporters need to know that shipping of foods and agricultural products must be done to meet Italian requirements whether sealed and bonded or not. Italy has also banned the commercialization of four corn varieties approved by the EU. The biotech corn ban may be in violation of EU regulations. The United States and the European Union are the two regions with the largest amounts of imports in Textile and Clothing as well as in terms of their GDP and power of purchase. There are also investment barriers in place making it a lengthy process and investors are prohibited from the airlines and aircraft manufacturing markets. Government procurement is also a problem as it is fragmented in Italy and there are problems with Conclusion:

There are many problems in trade…...

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Bibliography

Italy: Economy [Online] located at  http://www.geographyiq.com/countries/it/Italy_economy_summary.htm 

The World Textile and Clothing Trade: Globalization vs. Regionlization [Online] at  http://64.233.161.104/search?q=cache:RhDXwbnGQ6KJ:blake.montclair.edu/ 'cibconf/co

2001 Country Reports on Economic Policy and Trade Practices; Bureau of Economic and Business Affairs U.S. Department of State, February 2002

Italy in the World Economy ICE Report 2003-2004