What factor does not contribute to a country's trade deficit?

The factor that does not contribute to a country's trade deficit is an increase in foreign direct investment (FDI). When foreign direct investment occurs, it typically means that foreign companies are investing in the domestic economy, which can lead to various positive effects. These effects may include job creation, increased production capacity, and potentially higher levels of exports as new or expanding businesses seek to sell their products in international markets.

In contrast, increasing imports, decreasing exports, and a high currency value can all contribute to a trade deficit. When a country imports more than it exports, it leads to an imbalance in trade where money flows out more than it comes in, creating a deficit. High currency values can make domestic goods more expensive for foreign buyers, leading to declining exports, while lower exports and higher imports directly exacerbate the deficit. Thus, FDI is generally seen as a positive influence on a country's economy and trade balance rather than a contributing factor to a trade deficit.