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What is the primary problem with a trade deficit?

Updated: 8/21/2019
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Q: What is the primary problem with a trade deficit?
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What problem is most directly associated with a trade deficit?

More cash is leaving the country than is coming into the country is the primary problem with trade deficit. The trade deficit can have an impact on employment and incomes.


What is primary deficit in a budget?

Primary deficit=Fiscal deficit-[minus] Interest payments


What is trade deficite?

trade deficit occurs when? trade deficit occurs when?


Is India a trade deficit or trade surplus?

deficit


Does US have a deficit or trade surplus?

Trade deficit


Did the US have a trade surplus or deficit?

The USA has a trade deficit.


Does the UK have a trade surplus or trade deficit?

It has a surplus in trade of invisibles, and a deficit in trade of visibles.


What is primary deficit?

Primary deficit is the gross deficit which is obtained by subtracting interest payments from budget deficit of any country of a particular year. We need to know the value of primary deficit, while calculating the fiscal deficit.Alternative Definition of Primary DeficitPrimary deficit corresponds to the net borrowing, which is required to meet the expenditure excluding the interest payment.Primary Deficit = (Fiscal Deficit - Interest Payment)Statistical reports: Primary deficit ( in India)In the fiscal year 1999-2000: primary deficit was (-) Rs.2598.72 croreIn the fiscal year 2000-2001: primary deficit was (-) Rs.1038.38 croreIn the fiscal year 2001-2002: primary deficit was (-) Rs.2598.72 croreOver the last few year the fiscal status of India has improved. In the fiscal year 2006-07, the revenue deficit in India was 2%, primary deficit was 0.1% and fiscal deficit was 3.7 percent. The government of India budget for 2007-08 predicts a revenue deficit of 1.5%, primary deficit of -0.2% and fiscal deficit of 3.3 percent.


What might be one problem associated with trade deficit?

countries must borrow money to pay for their imports. -- A+


What might be one problem associated with a trade deficit?

countries must borrow money to pay for their imports. -- A+


Does Italy have a trade deficit or a trade surplus?

Germany currently has a trade surplus. COOL HUH !


The US trade deficit first became a problem in the 1970s because .?

The price of foreign oil was raised by OPEC.