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As the data presented in Table 1 indicate, the overall balance of trade has been on the decline since 1975. The merchandise balance of trade, however, has not been in sur plus since 1975. In spite of the merchandise trade deficit, the overall balance of trade remained positive, until 1983, when the services surplus was no longer able to overcome the merchandise deficit.
It is apparent that the merchandise trade deficit is the major problem area. A clearer perspective on what actually has been happening may be gained through looking at the data stated in real, as opposed to current, dollars. These data are pre sented in Table 2, which may be found on the following page.
As the data presented in Table 2 indicate, merchandise exports, when measured in real terms, have been increasing since 1985. Further, the rate of growth in merchandise
American International Trade: 1960 1989
(1982 $ in billions)
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Year Merchandise Services Balance
of Trade
Exports Imports Net Recepits Payments Net
1960 69 68 1 30 35 4 3
1965 88 97 9 44 38 6 30
1970 121 151 33 58 57 1 32
1975 172 188 16 88 53 35 19
1980 242 254 12 147 78 69 57
1985 232 368 134 136 104 32 10...