Parkin and Bade's Economics Second Edition defines trade balance as: The value of all the goods and services we sell to other countries (exports) minus the value of all the goods and services we buy from foreigners (imports) is called our trade balance.
Article answers the question "Since the U.S. Dollar is weak, shouldn't that imply we export more than we import (i.e., foreigners get a good exchange rate making US goods relatively cheap). So why does the U.S. have an enormous trade deficit?"
An essay by Nathan Johnson which asks the following: "The primary concern of the environmental lobbies is that further trade liberalization through the Free Trade Area of the Americas (FTAA) initiative will have adverse consequences on the environment. Is free trade bad for the environment?"
This article suggests that the current account deficit will not gradually improve over time, instead "the bubble will burst" overnight, having dramatic effects on the economy. This is because once the current account deficit grows too large "investors, fickle as they are, suddenly lose faith, turn tail and the currency and economy implode".
