Class 24: Trade deficit and roundabout

Today, Mr Rizzo TEARs a dollar!!! !!! ARHHH. Besides emphasizing on the importance on trade, specialization and comparative advantages, he continues to talk on why having a trade deficit on one particular sector doesn't mean the money is going to lose. The roundabout basically means that the money that goes out of the country through import will eventually go back to the country because of multiple means and methods. Even if the dollar is just getting torn and burnt, it just increases the value of USD in US, resulting in a net lost of zero as well.