The Issue Of Trade Deficit With China Essay - 752 Words

Other countries are also facing the issue of trade deficit with U.S. like India, Japan, and UK and the basic reasons include outsourcing, free trade and currency manipulation (Davies Thurlow, 2010). In relation to U.S. Johnson (2015) identified that since Korea Free Trade Agreement, trade deficit of U.S. with Korea has increased by 80% and more than 70,000 U.S. jobs have been lost. Moreover, in 2014 trade deficit with China raised by $ 23.9 billion to $ 342.6 billion as U.S. made $2.3 billion to $ 124.0 billion exports to China, whereas the imports were increased by $26.2 billion to $ 466.7 billion. Plamer (2012) stated that one of the reasons of high level of U.S. trade deficit with China is the actions by Beijing to manipulate currency and displacement of more and more jobs from U.S. to China. For instance, it has succeeded to eliminate about 2.7 million U.S. jobs during 2001 and 2011. Scott (2011) specified that trade liberalization and globalization resulted in extraordinary growth of U.S. trade with China but this put negative effect on the workforce of U.S. and its economy. Amount of foreign dept has been increased and U.S. is losing its capacity to export more than import that is the main issue of crisis in its manufacturing employment. Narayana (2011) revealed that more than 454,000 jobs were displaced in California only due to the currency manipulation of China, indigenous innovation policies and other trading policies. High rate of U.S. imports of computer andShow MoreRelatedGlobalization Of The United States1513 Words   |  7 Pagescompetitive country that other countries in the world tried to imitate. No more does this stand true. As of March 10,2016 Pope stated that, â€Å"the trade deficit in goods was approximately $930 billion, or 1.3 percent of gross domestic product† (Pope, 2016). 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