The trade surplus in 1980 was roughly zero. Compute the average ratio of investment to GDP and the average value of the trade balance as a percent of GDP in three periods: 1980-1989, 1990-1999, 2000-2009 and 2010 to the latest point. Would it appear that trade deficits have been used to finance investment?

Define the term TRADE DEFICIT

Table 23.7 provides some hypothetical data on macroeconomic accounts for three countries represented by A. B, and C and measured in billions of currency units. In Table 23.7, private household saving is SH, tax revenue is T, government spending is G, and investment spending is Calculate the trade balance and the net inflow of foreign saving for each country. State whether each one has a trade surplus or deficit (or balanced trade). State whether each is a net lender or borrower internationally and explain.

How big is the trade deficit relative to overall GDP?