The United States of America's current net exports are -460 billion dollars. This statistic was recorded in the third quarter of 2016. The United States is currently running a trade deficit. This signifies that imports outnumber exports. One specific example is the April 2016 numbers, in which imports outnumbered exports by $37.4 billion (Blog.bea.gov, 2016). This is the trade deficit for April of the year 2016. It is worth noting that the 460 billion dollar figure is the cumulative trade imbalance for the third quarter of 2016. (Fred.stlouisfed.org, 2017). The trade surplus is the amount by which a country’s exports exceed the cost of their imports. A trade deficit, on the other hand, is the monetary value by which the cost of a country’s imports exceeds its export’s value (Lee, 2016).
Impact on Exchange Rate And Industry
A country with a high exchanged rate often has a lower balance of trade while a country with a lower exchange rate has a higher balance of trade. This means that the industry shall have a tough time when there is a trade deficit since the exports shall be cheaper and imports more expensive. However, when there is a trade surplus, the industry shall import products cheaply and be able to sell them expensively.
Conclusion
The terms trade deficit and trade surplus are constituents of trade balance. This is essentially the monetary difference between a country’s exports and imports. When the balance is positive, the country is said to have favorable terms of trade or trade surplus. When the balance is negative, the country is said to be experiencing a trade gap commonly referred to as unfavorable balance.
Works Cited
Blog.bea.gov. (2016, June 3). Archive for the 'Trade Deficit' Category April 2016 Trade Gap is
$37.4 Billion. Retrieved February 02, 2017, from blog.bea.gov: https://blog.bea.gov/category/trade-deficit/
Fred.stlouisfed.org. (2017, January 27). Net Exports of Goods and Services. Retrieved February
02, 2017, from fred.stlouisfed.org: https://fred.stlouisfed.org/series/NETEXP
Lee, S. (2016). Balance of Trade (Liaden Universe Books of Before). Audible Studios on
Brilliance Audio; MP3 Una edition.
