Introduction This paper analyzes the concept of global trade imbalance as a policy issue currently being monitored by world leaders, economists and international trade analysts. It discusses a wide range of topics, explaining the various positions taken on the issue. For clarity and concise analysis, the paper is divided into informative and detailed segments, covering specific elements of the topic. Besides defining global trade imbalance, the research paper will cover some of the causes of this policy issue and possible ways of curbing its negative impact. Additionally, the paper will analyze policies, which have been proposed in handling the issue and the workability of each. Lastly, the research will give recommendations that are necessary in order to address the issue amicably. Global Trade In analyzing the issue of trade imbalance in the world today, it is essential to understand the meaning of balance trade. Generally, trade entails engaging in business activities, which include buying and selling of goods and services. Importantly, this is not limited to a region or country through import-export trade. While trade can be between individuals, countries also engage in trade for the purpose of selling what it has and acquiring what it does not have from other countries (Claessens, Evenett and Hoekman 11). Such relationships are commonly governed by mutual agreements between the concerned parties to benefit the economies of the two countries. This idea of mutualism brings into play the concept of balance trade between countries. What is it? Economists define balance of trade as the existing monetary difference between exports and imports of a nation over a specified period of time. In other words, the concept of balance of trade relates a country’s exports and imports. This interplay is quite significant in determining the economic benefit or impact of a given relationship between two or more nations. A positive balance between imports and exports is referred to as trade surplus, and focuses on mores exports compared to imports while a negative relationship results into a trade deficit. Trade deficit is sometimes known as trade gap and emanates from a trading relationship in which a country’s imports exceed its exports within a period of time. Balance of trade is regarded as a country’s balance of payments (Claessens, Evenett and Hoekman 12). By the fact that countries fight to guard against trade imbalance, it is doubtless that this situation has a host of implications as it shall be discussed later in the research paper. Global trade imbalance therefore refers to cases in which countries are importing more that what they are exporting. This can be an overall status of a country’s economy or an existing scenario based on its economic relationship with a specific country (Labonte and Makinen 5). The table below shows U.S. Current Account and Components: Source: U.S. Department of Commerce (Bureau of Economic Analysis) and Global Insight. Web. Causes of global imbalance trade In the understanding of international trade relationships and their impact, it is important to mention that global trade imbalances are on the increase around the world. For instance, the United States’ account deficit has significantly widened, raising alarm over the stability of t