U.S. Trade Deficit: Getting Better?

'Rising Exports Putting Dent in Trade Gap' discusses the how the U.S. trade deficit (when the number of imports exceeds number of exports) is gradually decreasing as a result of the increase in exports. The trade deficit is also expected to go down even further because of the U.S. dollar's weak value. It forces the U.S. to rely more on their own products to use and sell rather than relying on imports. A weak dollar can also benefit the U.S. in other ways as well.

As a result of a weak dollar, also has an effect on employment. During inflationary periods, the demand for goods is greater than the supply. This causes prices to increase and the value of the dollar to decrease because more money is in circulation. As a result, people buy more goods. Therefore, companies have to increase their productivity in order to keep up with the demand of the people, which subsequently causes employment to increase.

Also, a weak dollar affects other nations. If the U.S. dollar is weak that means inflation is occurring and the price of goods is going up. Therefore, the prices of our goods in other countries go up as well.