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trade deficit

trade deficit in Culture

trade deficit definition

The condition that exists when the value of what a country imports exceeds the value of what it exports; also called an unfavorable balance of trade.

Note: Trade deficits, because they imply that capital is leaving a country, can cause higher interest rates.
The New Dictionary of Cultural Literacy, Third Edition
Copyright © 2005 by Houghton Mifflin Company.
Published by Houghton Mifflin Company. All rights reserved.
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