EVERY purchase we make is TRADE.
We trade to improve our lives and trade occurs only when both parties benefit from the transaction.
Individuals and companies engage in trade; COUNTRIES DO NOT TRADE, as countries are just geographic areas with political boundaries.
The term “Trade Deficit” causes a lot of CONFUSION and IMPLIES that ONE COUNTRY is in DEBT to another country.
This is NOT the CASE.
The “Trade Deficit (or Surplus)” used to be called “The BALANCE of TRADE.”
the name was changed – a “trade deficit” sounds more ominous and gives the government a CHANCE to ADDRESS a PROBLEM THAT DOESN’T EXIST.