In theory having a trade deficit can last forever, as long as you can keep on paying for it, through reducing your savings or selling your assets abroad. However this is not really sustainable. So eventually the dollar will fall in value, allowing American exports to be more competitive.
If you're a company in America who decides to move their factory from Ohio to China, you will create a trade deficit to the U.S., assuming you only sell to Americans. However you still own the goods being made in China, you still own the factory and all the primary goods needed to make your product. Except because your costs have fallen (the reason why you moved production to China) your profits have now increased. Profit is income, so you're now richer.
Great Quiz tho
The top import categories from Malaysia in 2020 were: electrical machinery ($26 billion), machinery ($5.4 billion), rubber ($2.8 billion), optical and medical instruments ($2.6 billion), and furniture and bedding ($2.0 billion).
Who hasn't dreamt of the day they could sleep in a Malay Mattress?
I'm a relatively new quizmaker and I'm making a quiz that has the same answer twice, but I only want the answer to count as 1/however many instead of 2/however many. Any advice that you've got?
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