Trade Deficit
When country has a greater value of imports than its exports
Real World Example
During the New Imperialism era from 1800 to 1915, European countries often had trade deficits due to importing more goods, such as raw materials and luxury items, than they exported. This was important because it pushed countries to seek new territories and colonies to extract resources cheaply and sell excess products, thus hoping to balance the trade. The trade deficit concept was crucial for imperial powers to justify their expansionist policies, often leading to conflicts and control over foreign lands. Today, trade deficits still matter as they can impact a country's economy, influencing job availability and currency value. For example, if a country imports more electronics than it exports, it might result in fewer local tech manufacturing jobs, affecting people who work or could potentially work in that industry.
