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how does the growth of US imports affect current economic conditions?

how does the growth of US imports affect current economic conditions?

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When a country imports more than its exports, then the economy runs into a Trade Deficit. Balance of Trade Value of Total Export Value of Imports For example, Value of total export bn. 300 bn and value of import 350 Trade Deficit = $ 300-$350--$50bn As we can see when import is more then theres a deficit 1. Due to this deficit the country will be required to borrow from other countries in order to finance its deficit. 2. When a country import more than the country will be dependent on other countries political and economic power. For example, India iS dependent on Iran for oil, USA has imposed a ban oil from buying oil from Iran. This will have a significant impact on India since it is dependent of Iran. 3. Due to higher import the countrys Foreign reserve will decline thus, it will be required to buy Foreign currency at a higher price. That is the Domestic currency will depreciate against other currency 4. Higher level of Import will affect the domestic manufacturers and hence the employment level.

These are some of the factors which will affect the country's economic condition.

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