Trade Deficit and Competitiveness

Assess how a sustained trade deficit affects exchange-rate pressures, sectoral composition of the economy, and long-run competitiveness. Examine how firms adapt to global competition, how policymakers deploy industrial policy and trade instruments, and how balance-of-payments vulnerabilities influence strategic choices. Propose a multi-year plan for strengthening export performance, diversifying demand, and building resilience against external shocks, while balancing growth and equity considerations.