And what about the US dollar - how can a weak dollar actually help the US economy and the trade deficit?
This New York Times article, entitle Rising Exports Putting Dent in Trade Gap. The article was about how American companies are now relying significantly on sales from foreign territories. As a result of this new dependency, the huge trade deficit which as plagued to US may slowly start to decrease. Accord to the article, 500 companies in America are expecting %50 of their sales to be generated outside of the US. Trade deficit is when a country losses more money importing goods and services than it earns through exports. The opposite to this is known as trade surplus, when a country makes more money through exports than it losses through imports. And due to a weak dollar, American goods are also competitive in foreign domains.
The sort of goods that the US exports are cars, such as GM and construction equipment and engines such as those provided by Caterpillar. America is also exporting it's franchises, such as McDonald's and KFC. Infact, there are more KFCs in China than in America.
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