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LostInParadise's avatar

How is it possible for the U.S. to have a trade deficit with all other countries?

Asked by LostInParadise (31927points) June 10th, 2018

If people aren’t buying American goods then the demand for the dollar should be low, causing its value on the foreign exchanges to go down, making foreign goods more expensive and countering the deficits. Why hasn’t that happened?

Also, why aren’t countries upset to have trade surpluses? Their companies are selling some of their goods to the U.S. instead of their own citizens, without their citizens getting compensatory goods from the U.S.

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