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Image result for trade deficitThere is a lot of misinformation and misunderstanding about “trade deficits”. This is one of the simplest explanations I have read. Short but very understandable.

Before the political games proceed on the evils of trade, I think it would help to understand what it means.

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.

Source: Articles: The Trade Deficit Myth