Economics Trade Barriers Questions
Trade imbalances refer to the situation where the value of a country's imports exceeds the value of its exports, resulting in a deficit in the balance of trade. This means that a country is importing more goods and services from other countries than it is exporting, leading to a negative trade balance. Trade imbalances can occur due to various factors such as differences in production costs, exchange rates, government policies, and consumer preferences. They can have both positive and negative impacts on an economy, affecting employment, domestic industries, and overall economic growth.