trade deficit

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.


Nearby words

  1. trade barriers,
  2. trade bill,
  3. trade book,
  4. trade council,
  5. trade cycle,
  6. trade discount,
  7. trade dollar,
  8. trade down,
  9. trade dress,
  10. trade edition

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 Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.