Yes there can be
net trade deficits, but that is not income.
That is why we have a NAFTA
net trade deficit in goods of $ 70 billion.
Not exact matches
«In particular,
trade deficits are financed by
net capital inflows.
U.S. investment exceeds U.S. savings, and the United States runs a
trade deficit that is by definition equal to the gap between investment and savings.1 It also runs a capital account surplus equal to the gap because this is the amount of
net foreign capital inflow that bridges the gap, and the
trade account and the capital account for any country must always balance to zero.
The United States during this period ran large
trade surpluses and capital account
deficits as it exported its excess savings to fund its
net exports while the growth of its
trading partners was constrained by their urgent investment needs.
If Washington takes steps to reduce or eliminate Mexico's bilateral surplus with the United States, and this causes
net capital inflows into Mexico to decline, Mexico's [
trade]
deficit must decline, regardless of what happens to its bilateral surplus with the United States.
The bigger the
trade deficit, the greater the
net amount of capital the United States was importing, and on average the more productive investments Americans could fund.
Before the LDC Debt Crisis of 1982, for example, huge petrodollar hoards were recycled into developing countries, and these capital flows funded increases in consumption and investment that led to the large
trade deficits that balanced the
net capital inflows.
The United States is a
net importer of Chinese capital, for example, because it must finance its
trade deficit with China, and its
trade deficit with China is a consequence not of capital flows that may distort
trade but rather because of high manufacturing costs in the United States, with expensive labor almost always fingered as the main culprit.
As a
net importer of capital and with its large current account
deficit, Mexico helps absorb excess global savings and production that might otherwise force even larger U.S.
trade deficits.2 It does so in two ways.
If it is much higher, then a contraction in the
trade deficit can not occur without a contraction in
net foreign investment, which would only increase the gap between desired and actual investment by reducing actual investment levels.
OTTAWA (MNI)- Canada goods
trade deficit reached a record high C$ 4.1 billion in March, widening from C$ 2.9 billion in February, which was slightly revised from C$ 2.7 billion, leading to a deterioration of the balance in the first quarter that does not bode well for
net export contribution to GDP growth, according to data from Statistics Canada.
Although India runs a merchandise
trade deficit (2 1/2 per cent of GDP in 2002/03), it has a modest surplus on the current account (0.8 per cent of GDP in 2002/03), owing to sizeable inward current transfers and a surplus for
net services.
In the June quarter, the
trade deficit has declined a little, and the current account
deficit may have also declined, depending on the size of the
net income
deficit.
In contrast to other movements in the current account
deficit during recent years, which were mainly the result of fluctuations in Australia's
trade balance, the most recent increase largely reflected rising payments on Australia's stock of
net foreign liabilities — the
net income
deficit (Graph C1).
India's
net oil import bill increases by over 0.3 percent of GDP with every $ 10 per barrel increase in prices, putting pressure on the
trade deficit.
America's massive «military» budgets, still on the rise, are beginning to threaten the U.S. with bankruptcy, given that its
trade and fiscal
deficits already easily make it the world's largest
net debtor nation.
The «
trade deficit» is simply the
net sum of these assets that have been excluded from consideration.
If they then hold those dollars as reserves, then that means they imported something into the US without exporting something from the US in
trade, which creates a
net import, aka, a «
trade deficit».
The company reported full - year revenue growth of just 3 %,
net debt plus pension
deficit plus
trade payables (
net of receivables) totaling GBP 560 Million, and produced just GBP 31.6 M of free cash flow (vs. a prior GBP 42.0 M)-- and GNC still manages to sport a GBP 941 M market cap & an estimated P / E of 15.2!?