This should cause a decrease in the home country's demand for imports and increase in the foreign demand for the home country's exports, and therefore increase the current account. However, this relationship can be distorted by other factors. For example, when the dollar weakened during the 1985-87 period, the current account deficit became larger. In addition, while the dollar weakened against major currencies, it strengthened against some other currencies. This encouraged U.S. importers to purchase more goods denominated in currencies that weakened against the dollar.
Governments can place tariffs or quotas on imports to restrict imports.
They can also place taxes on income from foreign securities, thereby discouraging investors from purchasing foreign securities. If they loosen restrictions, they can encourage international payments among countries. This question is intended to encourage opinions and does not have a perfect solution. A negative current account is thought to reflect lost jobs in a country, which is unfavorable. More than 500 U.S. firms have developed offices or factories in China, Many other U.S. firms have become exporters to China in recent years.