Research and analyze the US trade deficit. Answer the following questions.

  • How large is the US trade deficit (relative to GDP)? 4 Points
  • How has the trade deficit changed recently? Why? 4 Points
  • Do you expect this trend to continue? 4 Points
  • Is this trade deficit a bad thing or a good thing, and why? 4 Points
  • Describe what would happen if we implemented more trade protection (tariffs, quotas, VERs) 4 Points

GDP data is available from the Bureau of Economic Analysis:

http://www.bea.gov/national/index.htm#gdp

Note: Your assignment must be in expository essay form, comply with APA style formatting, be 3-7 pages long (not counting cover and references pages), and in MS Word.