Thetradedeficitmeansthatthevalueofimportsexceedthevalueofexports。Itoccurswhenacountrysimportsexceeditsexports,resultinginanetoutflowoffundsfromthecountry。Inotherwords,tradedeficitoccurswhenacountrybuysmoregoodsfromtheothercountriesthanitsellstothem。Expansion,Tradedeficitshaveseriousconsequencesforacountryseconomicconditions,suchasadecreaseineconomicgrowth,higherinflationrate,andageneralreductionintheoverallinternationalcompetitiveness。Itcanalsoleadtoadecreaseinthevalueofacountryscurrency,makingitmoredifficulttopurchaseforeigngoods。