As part of the balance of payment calculation, trade deficit or trade surplus is called balance on goods and services Business news commonly uses the term trade deficit to discuss the U.S. economy rather than your textbook's favored term, balance on goods and services. The trade deficit or trade surplus has the biggest impact on the current account.

Politicians often warn us about the problems of the US having a trade deficit. Cordially debate whether the US should be concerned about our trade deficit.

First, discuss how the balance of payments can influence exchange rates and purchasing power. Then take a position either for or against trade deficits. In your position, address the pros and cons of the U.S. trade deficits. There are many supplemental resources available to assist you with this debate.