Trade deficit is always a cause of great worry for an economy
True or false?
Dear student,
false.
(Trade Deficit cannot always be bad for the economy)
Because Trade Deficit means a situation when Imports exceeds the exports of the country. And trade deficit is bad for the economy when it is arises from the imports of goods and services but when it arises due to making beneficial foreign investment by the people of the country in foreign countries , it cannot be bad for the economy in the long run .
Regards.
false.
(Trade Deficit cannot always be bad for the economy)
Because Trade Deficit means a situation when Imports exceeds the exports of the country. And trade deficit is bad for the economy when it is arises from the imports of goods and services but when it arises due to making beneficial foreign investment by the people of the country in foreign countries , it cannot be bad for the economy in the long run .
Regards.