Question

Complete the following questions: use specific examples to support your answers. If exports increase and imports...

Complete the following questions: use specific examples to support your answers.

  1. If exports increase and imports decrease in the U.S., what happens to the trade deficit? Will this help or hurt the U.S.? In what ways is a bigger trade deficit a problem for the country? What good is the deficit? Hint: Use the currency market supply and demand to determine the exchange rate.

  2. In what ways is the trade between countries increasing? Is trade good or bad for U.S.? What is the alternative to trade? What kind of lifestyle will the US have if the alternative is adopted? Is it a viable alternative to trade? Be specific.

  3. If there is increase in U.S. tourism and an increase in U.S. interest rates, what will happen to the U.S. dollar compared to other currencies in the foreign exchange market? Use the supply and demand graph to determine the answer. Explain your answer based on the graph.

  4. In the future, based on the opportunity cost for the U.S. workers, companies, and resources, what type of products or services will the country produce? What will continue to make the U.S. "richer" in the future? Consider U.S. resources and how they can best be used.

  5. If the exchange rate between US and Mexico is 1 U.S. dollar for 100 Icelandic Kronas, the U.S. economy is stronger than the Icelandic economy, and U.S. consumers have 100 times more buying power than an Icelandic consumers. Do you agree or disagree with the statement.

  6. As trade continues to grow, is there any reason that the U.S. is different than any other country? Is the world one big market with no meaning of what a country is? What do you think? Be specific and support your point of view.

0 0
Add a comment Improve this question Transcribed image text
Answer #1

EXPORT AND IMPORT:

The export and import is explain in given below

When increase in exports and reduction in imports in the United States will lead to growth in the net exports .

Thus improve the trade balance of the country and thus lead to deterioration in trade shortage of the nation.

This will aid United States as the trade balance of the republic will progress.

A better trade shortage of the state is a problem for the nation as it leads to upsurge in the present account deficit of the country.

Thus leads to decline in investor sentiment of the country.

This will lead to devaluation of the country's exchange rate and thus decline in foreign investment of the country.

Deficit is good if the increased government expenditure is used to finance capital equipment’s and used as capital spending which will generate rise in total revenue later

Increase in exports and decrease in imports in the United States will lead to increase in the net exports and thus improve the trade balance of the country and thus lead to decline in trade deficit of the country.

This will help United States as the trade balance of the country will improve.

A bigger trade deficit of the country is a problem for the country as it leads to increase in the current account deficit of the country.

Thus leads to decline in investor sentiment of the country.

This will lead to depriciation of the country's exchange rate and thus decline in foreign investment of the country.

Deficit is good if the increased government expenditure is used to finance capital equipment and used as capital expenditure which will generate increase in total revenue later.

Add a comment
Know the answer?
Add Answer to:
Complete the following questions: use specific examples to support your answers. If exports increase and imports...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • If the exchange rate between US and Mexico is 1 U.S. dollar for 100 Icelandic Kronas,...

    If the exchange rate between US and Mexico is 1 U.S. dollar for 100 Icelandic Kronas, the U.S. economy is stronger than the Icelandic economy, and U.S. consumers have 100 times more buying power than an Icelandic consumers. Do you agree or disagree with the statement. If there is increase in U.S. tourism and an increase in U.S. interest rates, what will happen to the U.S. dollar compared to other currencies in the foreign exchange market? Use the supply and...

  • Questions: c) An emergency tariff on a wide range of imports would be effective in addressing...

    Questions: c) An emergency tariff on a wide range of imports would be effective in addressing U.S deficits and forcing other nations to purchase more U.S. exports; d) One reason the U.S. does not export more is lagging investment in domestic industries. Why Protectionism Cannot Cure the Trade Deficit The causal link between investment flows, exchange rates, and the balance of trade explains why protectionism cannot cure a trade deficit. In his 1997 book, One World, Ready or Not, Washington...

  • The U.S. government restricting the quantity of sugar imports into the country is an example of...

    The U.S. government restricting the quantity of sugar imports into the country is an example of a(n): trade settlement. trade quota. market hanger. embargo. The key industries argument for trade restrictions relies on the notion that: war may disrupt trade flows. some industries deserve protection because they provide positive spillover effects to the rest of the economy. products with inelastic supply are the major source for job creation. economies of scale are easier to achieve in exporting industries. Which of...

  • (1) If the world price is above the domestic equilibrium price, the domestic country is likely...

    (1) If the world price is above the domestic equilibrium price, the domestic country is likely to ____________________ the good.          (2) The difference between what an economy sells to and buys from foreigners is _________________.          (3) The idea that exchange rates and prices adjust to equalize the cost of living across international boundaries is called __________________________.          (4) In the graph below, when the world price is $3, how many units are...

  • Q1, and 4. Please explain in detail about the answer, please use a graph, explain and...

    Q1, and 4. Please explain in detail about the answer, please use a graph, explain and interpret the graph if needed. Thank you 1. If the velocity of money were to increase but the money supply stayed the same, we definitely would see a. a decrease in nominal GDP. rightward shift in Aggregate Supply. b. a c. a decrease in real GDP d. a rightward shift in Aggregate Demand. e. deflation. 2. If a country increases its money supply by...

  • 2. (18 points) State whether each of the following statement is TRUE OR FALSE, and then briefly explain your answers (th...

    2. (18 points) State whether each of the following statement is TRUE OR FALSE, and then briefly explain your answers (the explanation is what counts). 2.1. If the Fed lowers discount rate, it will shift LM curve to the right because it increases money demand. 2.2. When an economy is in the liquidity trap, neither monetary policy nor fiscal policy is effective in getting the economy out of recession. 2.3. Money demand is related to the functions performed by money....

  • In this question, we study the consequences of trade policies on the automobile market. We assume...

    In this question, we study the consequences of trade policies on the automobile market. We assume that cars are all similar on the market (in other words, a car is a homogeneous good). The supply of Japanese cars is perfectly elastic at a price pJ = 20. Moreover, the supply of cars made in the US is QSus = p − 15 for any price larger than 15. Finally, the demand for cars from American consumers is QD = 30...

  • 1. A currency market starts at equilibrium. The fed decides to increase the supply of u.s....

    1. A currency market starts at equilibrium. The fed decides to increase the supply of u.s. dollars because of a new expansionary monetary policy. What happens to the amount of Mexican pesos that have to be given to recieve $1 in exchange? a) More pesos have to be given b)Less pesos have to be given c) the same number of pesos are given for $1 d)This effect cannot be determined e) none of the above 2. A few years ago,...

  • 2006, interest rates increased from 5% to 7%, when this happens consumers are A. less likely...

    2006, interest rates increased from 5% to 7%, when this happens consumers are A. less likely to save, that is, sell a financial asset. B. more likely to save, that is, sell a financial asset. C. less likely to save, that is, purchase a financial asset. D. more likely to save, that is, purchase a financial asset. I. In 2. If commercial banks hold all their assets in the form of required reserves: A. only they will be able to...

  • 6. The balance of payments is ..-(A) negative when the nation runs a trade deficit. (B)...

    6. The balance of payments is ..-(A) negative when the nation runs a trade deficit. (B) positive when the nation runs a trade surplus. (C) negative when the country is a borrower in the international apital market. (D) positive when the country is a lender in the international capital market. (E) always equal to zero. 7. If the U.S. dollar increases in value relative to the British pound, (A) U.S. wheat will become cheaper in England. (3) British bicycles will...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT