... the balance of payment can either have a trade deficit or a trade surplus in its accounts. A trade deficit would suggest that the exports are less than imports and a surplus would indicate that the country is exporting more than it imports. The economic implications for countries dealing with trade deficits are that when a country's imports are in excess of exports it would suggest that there is a negative demand for that country's goods and services from abroad. Reduction in foreign demand would cause the aggregate demand to come down as it has the same implications on the economy as a reduction in one of the other three components of aggregate demand. So as a result, this will bring down the country's output and thus the producers will only need fewer workers, causing a decrease in the level of workforce employed which would eventually create unemployment. ...

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