What is a trade deficit?

With this terrifying story, I think it's important we all have a strong understanding of what a trade deficit is, and how it will affect our lives.

"The U.S. trade deficit with China last year was a record $273 billion, one-fifth more than in 2009. The administration is considering filing new trade cases against Chinese practices that U.S. companies contend are unfair. Click here to read the rest of the story from FOX news."

Definition: A trade deficit is an economic measure of a negative balance of trade in which a country's imports exceeds its exports. A trade deficit represents an outflow of domestic currency to foreign markets.