Summary: This article talks about the British trade deficit. The article talks about how the imports and exports of Brittan have fallen dramatically in the past year, the imports have fallen by 2.2% which is a 36.6 billion pound loss while the exports have fallen by 1.6% which is a 23.5 billion pound loss, these loses have brought Britain into a goods deficit by 9.1 billion pounds. They say that Britain is only in this mess because they do not make enough items that people want to buy, so the government said that they will try to boost their exports. They say that the fall of the British export happened mostly when their biggest trading partner which was the countries within the European Union went down by 300 million-11.7 billion pounds. This is what shot them down the drain while the exports outside the European unions were better then only went down by 100 million pounds to 11.9 billion pounds. I believe that you should read this article because it shows how any country can go into deficit, we seen the Britain was one of the world’s most powerful and rich country but look now it’s in a trade deficit. This also helps a person realise that if Britain can go into a deficit so can Canada which at the end can harm oneself the most, if Canada goes into a deficit then we all can lose our jobs and with the loss of our jobs it will be hard to feed our families and pay for our bills in return. This article also shows how the government and the people who live in that country need to keep on producing items that are needed in life, if they aren’t then we will also go into deficit. Canada produces oil which is always needed in the world so if we can continue to do this we can’t go into deficit, you should also read this article because it shows how the economy of a country can go down hill very fast after the deficit which will affect all of it, because with no work we all will lose our jobs and it will take several years to rebuild the economy, it also tells us that if we stick with one country in trading and that country goes into a recession then we can be finished at the end but if we stick to many countries and one goes into a recession but the others are still their then we are fine. This is why I believe you should read this article.
1. Definition of 'Deficit'
The amount by which expenses exceed income or costs outstrip revenues. Deficit essentially refers to the difference between cash inflows and outflows. It is generally prefixed by another term to refer to a specific situation - trade deficit or budget deficit, for example. Deficit is the opposite of "surplus" and is synonymous with shortfall or loss.
2. Definition of 'Eurozone'
A geographic and economic region that consists of all the European Union countries that have fully incorporated the euro as their national currency.
Also referred to as "euroland".
3. Definition of 'European Sovereign Debt Crisis'
A period of time in which several European countries faced the collapse of financial institutions, high government debt and rapidly rising bond yield spreads in government securities. The European sovereign debt crisis started in 2008, with the collapse of Iceland's banking system, and spread to primarily to Greece, Ireland and Portugal during 2009. The debt crisis led to a crisis of confidence for European businesses and economies.
4. Definition of 'Quarter - Q1, Q2, Q3, Q4'
A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends. A quarter refers to one-fourth of a year and is typically expressed as "Q." The four quarters that make up the year are: January, February and March (Q1); April, May and June (Q2); July, August and September (Q3); and October, November and December (Q4). A quarter is often shown with its relevant year, as in Q1 2012 or Q1/12, which represents the first quarter of the year 2012.