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Article Analysis - Essay Example

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When country’s net export decreases, it implies that the country will have less foreign currencies to finance its imports from the other countries. This results to a huge deficit or…
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Article Analysis
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Article Analysis

Download file to see previous pages... tions are concerned about the performance of other economies because when other economies are growing America will be able to export different commodities to those economies. The growth in exports will result to reduction in the trade deficit. When the economy grows at a negative rate citizens will import less from other countries because the price of import is higher (Sparshott, 2014). Therefore, even the neighboring countries that have stable economies will suffer because the export market will shrink. This was the situation that faced U.S. due to slow growth rate in other countries such as Europe, China, and South Africa.
A nation should identify sector of the economy that is performing well in terms of exports so that they can give it government support because the more exports the smaller the trade deficit and the higher the growth of the economy (Sparshott, 2014). Increase in job opportunities predicts an increase in production in the future.
In conclusion, a growing economy is characterized by increasing exports over the imports. However, exports are affected by the performance of other economies hence slow growth in international economies will affect the U.S. economy ...Download file to see next pagesRead More
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