Writing Assignment Economic Instructions: Write a double-spaced two-page paper on any one of the following topics 1. What trade model will best explain the U.S /Chinese trade relations? Identify the...

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Course: International Economics
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Title: Explain the impact of the U.S trade deficit on the performance of the U.S economy during the last two decades.
Contents
Introduction    3
Impact of US Trade Deficit on Performance of US Economy    3
Trade deficit in last two decades:    4
Cause of Deficit    4
Benefits of Trade Deficit    5
Conclusion    6
Works Cited    7
Introduction
Since November 2016, when Mr. Donald Trump took his responsibility as the president of the United States of America (US), the economy of US witnessed several micro and macro level changes. It can be either due to his “America First” rhetoric or due to tweaking the trade relations or his stance on H1B Visas. So how does the economy of the US react to such a change within the regulatory framework of that nation? According to the views of Eaton et al., out of the several metrics or indices developed by economists to measure the pace and direction of an economy, trade deficit is the one.
Impact of US Trade Deficit on Performance of US Economy
Presently, talking in the context of the US economy, the trade deficit of the US has narrowed down to USD 49.3billion in November 2018 from an upwardly forecasted value of USD 55.7billion. It has been said that it is registered lowest value of trade deficit past 5 months in US economy. If analyzing the technicalities, it can be said that a Trade Deficit of any economy or a nation is the numerical difference between exports and imports of goods and services from that economy.
The US is experiencing the trade deficit for a very long time; however, President Trump wants to reduce these trade deficits with his protectionist measures and steps. As a result of this, he imposed a regulatory tariff...