Why Is the U

question 200

Essay

Why is the U.S.trade deficit almost always larger than the U.S.current account deficit?

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Definitions:

Inventory Turnover Ratio

A measure of how rapidly inventory is sold or used in a given period, calculated by dividing cost of goods sold by average inventory.

Days' Sales

Often refers to days' sales outstanding (DSO), which measures the average number of days it takes a company to collect payment after a sale has been made.

Inventory

Goods and materials that a business holds for the ultimate goal of resale or processing.

Retail Method

A technique used by retailers to value inventory based on the retail price of goods, typically used to estimate ending inventory and cost of goods sold.