ECO 372 Week 5 DQ 3 What Is The Effect Of A Trade Surplus Trade Deficit 
What is the effect of a trade surplus? What is the effect of a trade deficit? How do trade deficits and surpluses affect the industry in which you work?
“A surplus in the trade balance means that exports exceed imports—we’re producing more than we’re consuming”. (Colander, 2010, p. 505)A trade surplus is a positive balance of trade where a country’s exports exceed its imports. There is a net flow of domestic currency from foreign markets representing a net outflow. “A deficit in the trade balance (the difference between imports and exports) means that, as a country, we’re consuming more than we’re producing. Imports exceed exports, so we’re consuming more than we could if we didn’t run a deficit.” (Colander, 2010, p.505) A trade deficit is a negative balance of trade where a country’s imports exceed its exports representing an outflow of domestic currency to foreign markets meaning that large amounts of the U.S. dollar are being held by foreign nations, value of the dollar declines, and imports become more costly to purchase.
Healthcare spending plays a vital role in the overall health of the United States economy. Healthcare costs have contributed greatly to the U.S. trade deficit in recent years“Recent projections suggest that total spending in the U.S. health care sector exceeded $2.5 trillion in 2009”. (Whitehouse.gov, 2012) Working in the healthcare industry for so many years I would have to say that a direct affect of a trade deficit would be limited supplies and equipment needed for the hospital to fulfill its scope of services. However a surplus would mean that supplies and equipment were limitless. Both situations will cost the facility extra expenses. Reference Colander, D. C. (2010). Macroeconomics (8th ed.). Boston, MA: McGraw-Hill/Irwin. Whitehouse.gov (2012) Reforming Health Care. Retrieved March 8, 2015 from http://www.whitehouse.gov/sites/default/files/microsites/economic-report-president-chapter-7r2.pdf
“A surplus in the trade balance means that exports exceed imports—we’re producing more than we’re consuming”. (Colander, 2010, p. 505)A trade surplus is a positive balance of trade where a country’s exports exceed its imports. There is a net flow of domestic currency from foreign markets representing a net outflow. “A deficit in the trade balance (the difference between imports and exports) means that, as a country, we’re consuming more than we’re producing. Imports exceed exports, so we’re consuming more than we could if we didn’t run a deficit.” (Colander, 2010, p.505) A trade deficit is a negative balance of trade where a country’s imports exceed its exports representing an outflow of domestic currency to foreign markets meaning that large amounts of the U.S. dollar are being held by foreign nations, value of the dollar declines, and imports become more costly to purchase.
Healthcare spending plays a vital role in the overall health of the United States economy. Healthcare costs have contributed greatly to the U.S. trade deficit in recent years“Recent projections suggest that total spending in the U.S. health care sector exceeded $2.5 trillion in 2009”. (Whitehouse.gov, 2012) Working in the healthcare industry for so many years I would have to say that a direct affect of a trade deficit would be limited supplies and equipment needed for the hospital to fulfill its scope of services. However a surplus would mean that supplies and equipment were limitless. Both situations will cost the facility extra expenses. Reference Colander, D. C. (2010). Macroeconomics (8th ed.). Boston, MA: McGraw-Hill/Irwin. Whitehouse.gov (2012) Reforming Health Care. Retrieved March 8, 2015 from http://www.whitehouse.gov/sites/default/files/microsites/economic-report-president-chapter-7r2.pdf