US trade deficit up as price of oil rises

This article talks about the US' trade deficit, which is the difference between imports and exports in the US' trade, is at the second highest level this year. This is due to the raise in oil prices and strong demand for Chinese products.

The reason that the US constantly has a high trade deficit may be because of a weak Chinese currency, which would make Chinese goods seem relatively cheaper. Chinese-made goods also have much lower costs compared to US-made goods, due to low labor costs. Also, oil has an inelastic demand, so when the price goes up, the quantity demanded wouldn't change much, therefore the total value of oil imported increases.

EU aid to help developing countries jump on biofuel bandwagon

EU aid to help developing countries jump on biofuel bandwagon

The article talks about wealthy countries in Western Europe are giving aid to developing countries in Africa, for them to grow crops that can be used to produce biofuels.

I think this shows how trade can benefit both sides. The Western countries can benefit from having a new source of crops they can use to produce biofuels, therefore lowering the price of biofuels, and making them less dependent on fossil fuels. The African countries can have more employment and improve their own economy.