Which of the following statements is true about trade surpluses? O generating a trade surplus and an overall net inflow of capital is impossible O the government should always strive for a trade surplus and a healthy inflow of foreign capital O increasing foreign capital investment is better than generating a trade surplus O the government generating a trade surplus is better than increasing foreign capital inflows

Which of the following statements is true about trade surpluses? O generating a trade surplus and an overall net inflow of capital is impossible O the government should always strive for a trade surplus and a healthy inflow of foreign capital O increasing foreign capital investment is better than generating a trade surplus O the government generating a trade surplus is better than increasing foreign capital inflows

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter23: The International Trade And Capital Flows

Section: Chapter Questions

Problem 19SCQ: Describe a scenario in which a trade surplus benefits an economy and one in which a trade surplus is...

See similar textbooks

Similar questions

Occasionally, a government official will argue that a country should strive for both a trade surplus and a healthy inflow of capital from abroad. Is this possible?
The US has just reduced its tariffs for agricultural imports. Which of the following statements is TRUE about the impact of this policy change on the welfare of other countries when US is large enough to affect world prices with this policy change?Select one:a.The consumers and producers in net exporting countries become better off but the consumers and producers in other net importing countries become worse off.b.The consumers and producers in net exporting countries become worse off but the consumers and producers in other net importing countries become better off.c.The consumers in all other trading countries become worse off and the producers in all other trading countries become better off.d.The consumers in all other trading countries become better off and the producers in all other trading countries become worse off.
Consider a small country that exports steel. Suppose that a “pro-trade” government decides to subsidize the export of steel by paying a certain amount for each ton sold abroad. How does this export subsidy (similar to a tariff) affect the domestic price of steel, the quantity of steel produced, the quantity of steel consumed, and the quantity of steel exported? How does it affect consumer surplus, producer surplus, and government revenue? Is it is a good policy from the standpoint of economic efficiency?
A "static" gain resulting from the formation of the European Union or the U.S.-Mexico-Canada Trade Agreement would be O expanded size of the market due to trade, resulting in economies of large-scale production and decreasing unit cost. outward shifts in a country's production possibilities frontier made possible by the discovery of new technologies. O facing lower priced, zero-tariff imports from members, consumers increase their demand for these goods, and new trade will be created O increased saving and investment resulting in capital accumulation and economic growth.
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 Rise
Describe a scenario in which a trade surplus benefits an economy and one in which a trade surplus is occurring in an economy that performs poorly. What key factor or factors are making the difference in the outcome that results from a trade surplus?
Berdasarkan jadual berikut yang menunjukkan kemungkinan kadar syarat dagangan negara I dan permintaan import barang Y negara I pada setiap kadar syarat dagangan. Given the following table showing possible terms of trade for country I and country I's corresponding demand for imports of good Y at each terms of trade: Titik Kadar Syarat Dagangan Kuantiti Permintaan Import barang Y oleh Negara I Term of Trade Point Country I's quantity demand of import of Y (a) 1X:1Y or Px/Py= 1 20 units (b) 1X:2Y or Px/Py=2 46 units (c) 1X:3Y or Px/Py=3 69 units (d) 1X:4Y or Px/Py= 4 84 units a) Kirakan jumlah penawaran eksport barang X oleh Negara I pada setiap kadar syaratdagangan dan lakaran keluk tawaran yang berkaitan. Calculate the supply of exports of good X by country I at each terms of trade and plot the resulting offer curve. b) Kenapa negara yang mengeksport barang X sanggup untuk mengimport lebih banyak barang Y apabila kadar syarat dagangan meningkat ? Why would a county exporting good X be…
Consider a country that is open to trade. Although the country imports and exports goods and services from more than 200 different nations, the bulk of its imports and exports tend to come from the same eight nations. Identify some possible reasons why this country obtains the majority of its imports and exports from only eight different nations as opposed to having the imports and exports more evenly split across the 200 different nations that it conducts trade with.
Consider the following exports and imports for a country: Exports Imports Refined Petroleum $58.4B Cars $144.0B Crude Petroleum $52.3B Computers $92.4B Cars $47.6B Packaged Medicaments $84.1B Integrated Circuits $544.2B Broadcast Equipment $82.0B Packaged Medicaments $34.7B Crude Petroleum $75.1B Calculate the overall amount of intra-industry trade in the appropriate goods as well as the intra-industry trade share for the entire country.
The US exports $10 billion worth of inorganic chemicals to Germany and imports inorganic chemicals from Germany for the same dollar amount. Japan imports $1 billion of garments from Indonesia, but does not export any to Indonesia. The measure of intra-industry trade between Germany and the US first, and between Japan and Indonesia second are respectively... a. 0.5 and 0.5 b. 1 and 0 c. -1 and 1 d. 0 and 1
https://www.bea.gov/data/intl-trade-investment/international-trade-goods-and-services Using Table 2 from "U.S. Trade in Goods and Services by Selected Countries and Areas, 1999 - Present," from which three nations (not areas or regions did the U.S. import the highest dollar value of goods and services in 2021? Using Table 2 from "U.S. Trade in Goods and Services by Selected Countries and Areas, 1999 - Present," from which three nations (not areas or regions did the U.S. import the highest dollar value of goods and services in 2017?
Q29 What is meant by the concept of "trade diversion"? a. Trade that is shifted between members of a customs union. b. The replacement of an existing foreign supplier from one country with a new foreign supplier from another country based on its membership in a trade agreement. c. The creation of a free-trade area. d. Something that is predicted by theory, but has never been observed in practice. e. An increase in economic efficiency that comes with a newly established trading relationship.