Asked by Mohamed Azzeh on Jun 24, 2024
Verified
Firms would prefer to manufacture in a country that has a trade surplus, or a higher level of exports than imports.
Trade Surplus
A situation where a country exports more goods and services than it imports, leading to a positive balance of trade.
- Analyze the impact of tariffs, quotas, and trade balances on global trade and choices regarding where to produce goods.
Verified Answer
CD
Cameron DouglasJun 25, 2024
Final Answer :
True
Explanation :
Firms prefer to manufacture in a country that has a trade surplus because it indicates that the country is competitive in the global market and has strong demand for its products. This can lead to a stable economy and a favorable business environment.
Learning Objectives
- Analyze the impact of tariffs, quotas, and trade balances on global trade and choices regarding where to produce goods.