Evaluating Trade Deficits

The video tutorial explores trade deficits, focusing on the UK's experience and the broader implications of running a trade deficit. It discusses the sustainability of deficits, using Norway's investment in oil exploration as a case study. The tutorial emphasizes evaluating the reasons behind a deficit and its long-term effects on the economy, highlighting that not all deficits are detrimental if they lead to productive investments.

How can a trade deficit be sustainable for a country?

Provide an example of a country that successfully managed a trade deficit and explain how it benefited.

What factors should be considered when evaluating the sustainability of a trade deficit?