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Trade deficit/surplus

Tobacco and Tobacco Substitutes
From United States of America
To Norway
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Dave B.
Apr 15, 2020
How is it possible for a country to run a long-term trade deficit/surplus?

1 answer

Julius S.
Apr 15, 2020
"Trade deficits/surpluses measure less than half of the flow of money into and out of any territory, money flows associated with the movement of goods into and out of the territory (trade). Depending on how it is measured, the balance of trade may not even include the flow of services into and out of the territory and almost never includes the flow of investments in and out.Trade accounting considers the flow of money associated with imports and exports of goods but does not consider the flow of money from investments or sales services."
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