Asked by Abdullah Elalami on Apr 28, 2024
Verified
Statement I: Since the mid 1970s our balance of trade has been negative.
Statement II: The United States foreign trade sector has more than doubled over the last 30 years.
A) Statement I is true and statement II is false.
B) Statement II is true and statement I is false.
C) Both statements are true.
D) Both statements are false.
Balance of Trade
The difference in value between a country's imports and exports over a given period, indicating the net earnings on foreign trade.
Foreign Trade Sector
The segment of an economy's market dealing with the exchange of goods and services across international borders.
- Absorb the details and importance of net exports in the national economic scenario.
- Gain an understanding of the outcomes of trade agreements and the influence of trade imbalances on the economies of countries.
Verified Answer
TC
Theresa ChidinmaMay 04, 2024
Final Answer :
C
Explanation :
Both statements are true. The United States has experienced a negative balance of trade since the mid-1970s, meaning it imports more than it exports. Additionally, the foreign trade sector in the United States has indeed more than doubled over the last 30 years, reflecting significant growth in international trade activities.
Learning Objectives
- Absorb the details and importance of net exports in the national economic scenario.
- Gain an understanding of the outcomes of trade agreements and the influence of trade imbalances on the economies of countries.