What's is: A trade deficit occurs when the value of a country's exports is less than its imports. To finance the deficit, the country has to borrow from foreigners or sell assets (through investment inflows in the capital market, for example).
What's it: Export means sending domestic goods and services to foreign markets for sale. As compensation, we get foreign currency as payment, say US dollars. Thus, exports do not only have implications for the demand for domestic output. But, it