A trade deficit occurs when total exports are less than total imports.

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A trade deficit occurs when a country's imports exceed its exports, resulting in a negative balance of trade. This means that the country is importing more goods and services than it is able to export, leading to a net outflow of domestic currency to foreign countries. A trade surplus, on the other hand, occurs when a country's exports exceed its imports, resulting in a positive balance of trade.

A Trade Deficit Occurs When Total Exports Are Less Than