Which of the following is true about the trade imbalance in the United States?

• A. The United States has eliminated its trade imbalance in recent years.
• B. The United States consistently has a trade surplus, exporting more than it imports.
• C. The United States typically runs a trade deficit, importing more goods and services than it exports.
• D. The United States only trades with countries in North America.

Answer: (C)

Verified step by step guidance

1. Step 1: Understand the concept of trade imbalance. A trade imbalance occurs when a country’s imports and exports are not equal. If a country imports more than it exports, it has a trade deficit; if it exports more than it imports, it has a trade surplus.
2. Step 2: Recall the typical trade pattern of the United States. Historically, the U.S. has imported more goods and services than it exports, leading to a trade deficit rather than a surplus or balanced trade.
3. Step 3: Evaluate each statement in the problem: The U.S. has not eliminated its trade imbalance recently, so the first statement is false. The U.S. does not consistently have a trade surplus, so the second statement is false. The U.S. trades globally, not only with North American countries, so the last statement is false.
4. Step 4: Identify the true statement: The U.S. typically runs a trade deficit, importing more goods and services than it exports. This aligns with historical data and economic reports.
5. Step 5: Conclude that the correct understanding of the U.S. trade imbalance is that it usually experiences a trade deficit, which means it imports more than it exports.