For the past couple of decades, there has been a conversation about China and their "threat" to the United States economy. We often hear people discuss the "trade deficit" the United States has and, specifically, we hear people talk about the threat China poses to the US regarding economic and national security. These were big issues in the 2016 election, as you will see in this video with Donald Trump and Bill O'Reilly below:
Since the above video probably doesn't work for you, you can watch it here: http://www.foxnews.com/transcript/2016/02/11/donald-trump-on-trade-deficit-with-china.html
So, this debate is something people talk about regularly, but is it true that a trade deficit is bad for our economy? To answer this question, you will complete the following:
The following supporting questions should help you answer the question "is a trade deficit bad for us?"
1. Why do some countries restrict trade?
2. What is the difference between balance of payments and balance of trade?
3. How does a depreciating dollar impact trade?
For each supporting question, there are tasks for you to complete. At the end of the inquiry, there will be a summative task. Click the navigational links on the left hand side to go to the questions. I recommend reading through the glossary terms prior to starting with Question 1.