Tag Archives: trade

The Truth About Trade Deficits

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For centuries, the mercantilist perspective has had an unfortunately persuasive voice in policy discussions centering on international trade. Essentially economic nationalism, mercantilism ruled yesteryear’s economy with its advocacy of low imports and high exports to retain a competitive advantage in the war-like international market of zero-sums(Ewert, 1996). Although now infrequently championed under the title of mercantilism, this philosophy lingers in the popular fear of trade deficits. Many are led to believe that a deficit in trade exists when one nation

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