This is Mary Walden with economist MW, welcoming you to the economic perspective. Today’s program looks at trade in services. Mike, the U.S. runs a trade deficit in the hundreds of billions of dollars with foreign countries. This is one factor in the current trade disputes the US has with several countries. But are there sectors of our economy that don’t have trade deficits?
- There are two
- One is agriculture – we sell more farm products to other countries than we import
- Testimony to the productivity of our farmers and our good soil and water
- The other is services
- Services is a broad sector – includes entertainment, professional services, and even smart phone services – indeed, Apple is the largest exporter of services
- Also – foreign tourists visiting the US is considered an export of services
- So, in thinking about foreign trade, remember services along with products
And I’m Mary Walden for the Economic Perspective, an NC State Extension program from the Department of Agricultural and Resource Economics.