In a given year, US exports were $5 billion and imports were $16 billion. What was the US trade deficit or trade surplus that year?

Question

History

Aisha Malone

21 October, 14:24

In a given year, US exports were $5 billion and imports were $16 billion. What was the US trade deficit or trade surplus that year?

+3

Answers (2)

Know the Answer?

Brooklyn Stein · Answer 1

16 Billion-5 billion=11 Billion Dollars

Kara White · Answer 2

The answer is: United States would have a deficit of $11 billion in the given year.

A trade surplus occurs when a country exports more than it imports. On the other hand, a deficit is when a country imports more products than it exports.

In the above example, the United States is exporting only $5 billion of goods but importing $16 billion of products. This means that the total trade deficit in the example is 16-5 = $11 billion.

This actually represents the current situation of the United States where it has a significant trade deficit with many major economies in the world, most noticeably with China.