Internation Economic Essay Example | Topics and Well Written Essays - 500 words

Internation Economic - Essay Example4.The fall in states has experienced a Balance of recompense Trade deficit since 1982. You are a member of the Council of economic advisers to President and you role is to advise the President, who is very concerned about the rising EURO and the Trade Deficit, on how he can reduce or remedy the Trade deficit respond to the Euro. What actions would you recommend and why?The US trade deficit shows that the country is trade more than its exports. Any act of balancing the trade deficit through increased exports that match with the imports exit take years to yield the desired results. One of the easiest ways to ease out is through golden changes in the currency exchange grade such as the Euro. A rising euro means that the United States is able to export more than prior levels. As such, the trade deficit has come down since 1996 compared to previous years. Therefore, it is advised to maintain the favorable variations in currency by looking into the factors that affect these exchange rates and utilizing them for the benefit of the