If the value of goods and services that Australia purchases from the United States are less than the value of goods and services that the United States purchases from Australia, then the United States has a. positive net exports with Australia and a trade surplus with Australia. b. positive net exports with Australia and a trade deficit with Australia. c. negative net exports with Australia and a trade surplus with Australia. ar negative net exports with Australia and a trade deficit with Australia.
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- If imports exceed exports, is it a trade deficit or a trade surplus? What about if exports exceed imports?If the US Government increased Tariffs on goods imported in the US from China, what would most likely happen O China would not respond, making US Net Export Spending rise and China's Net Export Spending drop: China would respond in kind, causing minimal change in either nation's Net Export Spending OChina would respond but to a lesser degree, making US Net Export Spending rise and China's Net Export Spending drop China would respond to a greater degree, making US Net Export Spending drop and China's Net Export Spending RiseWhat is the so-called home-market effect? Which of the following statements on the home market effect are true? а. Countries with a large (and possibly older) domestic market for a particular commodity are more likely to be only importers of the commodity, but they only very rarely turn into sufficient exporters. b. Countries with a large (and possibly older) domestic market for a particular commodity are more likely to have become exporters of such a commodity too. C. Countries with large domestic markets are become exporters of industrial commodities, while smaller nations focus on services and agriculture. d. The home-market effect is a special condition under which the WTO tolerates the introduction of new tariffs.
- Canada is both an importer and an exporter of cars. If Canada exports more cars than it imports and the price of cars rises, then ceteris paribus, Canada's terms of trade... Deteriorates because the gain in imports more than offsets the loss of exports. o b. Remains the same because the index of export prices rises by the same amount as the index of import prices. O c. Improves because the index of export prices rises and the index of import prices falls. o d. Improves because the index of export prices rises more than the index of import prices. Deteriorates because of the loss of exports that would result.When the nation of Ectenia opens itself to worldtrade in coffee beans, the domestic price of coffeebeans falls. Which of the following describes thesituation?a. Domestic production of coffee rises, and Ecteniabecomes a coffee importer.b. Domestic production of coffee rises, and Ecteniabecomes a coffee exporter.c. Domestic production of coffee falls, and Ecteniabecomes a coffee importer.d. Domestic production of coffee falls, and Ecteniabecomes a coffee exporter.1. Imports, exports, and the trade balanceThe following table shows the approximate value of exports and imports for the United States from 1997 through 2001.Complete the table by calculating the surplus or deficit both in absolute (dollar) terms and as a percentage of GDP. If necessary, round your answers to the nearest hundredth.YearGDPExportsImportsExports – Imports(Billions of dollars)(Billions of dollars)(Billions of dollars)(Billions of dollars)(Percentage of GDP)19978,332.0 954.41,055.8 19988,794.0 953.91,115.7 19999,354.0 989.31,251.4 20009,952.0 1,093.21,475.3 200110,286.0 1,027.71,398.7 Source: “Income, Expenditures, Poverty, & Wealth: Gross Domestic Product (GDP),” United States Census Bureau, United States Department of Commerce, last modified September 2011, accessed June 10, 2013, https://www.census.gov/library/publications/2011/compendia/statab/131ed/income-expenditures-poverty-wealth.html. Between 1997 and 1998, the in dollar terms and as a percentage of GDP.
- (a) With the help of a graph, explain how the quantities of exports and imports of a country canbe determined in a two-country and two-goods world. (b) Explain with the help of a graph theeffect of an increase in the relative price of the exported good of a country on its welfare.If Malaysia has a trade surplus, then A.imports into Malaysia exceed exports from Malaysia. B.exports from Malaysia exceed imports into Malaysia. C.imports into the United Arab Emirates from Malaysia exceed exports from the United Arab Emirates into Malaysia. D.imports into Malaysia from the United Arab Emirates exceed exports from Malaysia into the United Arab EmiratesHow would the following transactions affectU.S. exports, imports, and net exports?a. An American art professor spends the summertouring museums in Europe.b. Students in Paris flock to see the latest movie fromHollywood.c. Your uncle buys a new Volvo.d. The student bookstore at Oxford University inEngland sells a copy of this textbook.e. A Canadian citizen shops at a store in northernVermont to avoid Canadian sales taxes
- When countries specialize in the production of goods they have the comparative advantage in, both and will increase O prices, the trade deficit O production, consumption price level, unemployment consumption, unemploymentWhen the nation of Ectenia opens itself to world tradein coffee beans. the domestic price of coffee beansfalls. Which of the following describes the situation'•· Domestic prOduction of coffee rises, and Ectenoabecomes a coffee imoorter.b. Domestic prOduction of coffee rises, and Ecten iabecomes a coffee exporter.c. Domestic prOduction of coffee falls. and Ecteniabecomes a coffee importer.rl Domestic PrOduction of coffee falls. and Ecteniabecomes a coffee exporter.1._______ The total value of a nation’s exports minus thetotal value of its imports over some period of time.2._______ The ability to produce a specific product moreefficiently than any other nation.3._______ Selling and shipping raw materials or products toother nations.4._______ The ability to produce a specific product moreefficiently than any other product.5._______ All business activities that involve exchangesacross national boundaries.6._______ The total flow of money into a country minus thetotal flow of money out of that country over thesame period of time.7._______ A tax levied on a particular foreign product entering a country.8._______ A complete halt to trading with a particular nationor in a particular product.9._______ An international barter transaction.10. _______ An internationally supported bank that providesloans to developing countries to help them grow.a. countertradeb. foreign exchange controlc. multilateral development bank (MDB)d. absolute advantagee. import…