ECONOMICS
BALANCE OF TRADE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The US does not import products
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Some are easier and cheaper to make in other countries
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The US makes all of its own products
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None of the above
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Detailed explanation-1: -They bring lower prices and more choices for American families as they try to stretch their budgets. Companies also depend on imports for raw materials and competitively priced inputs. Imports give us access to products that would not otherwise be available-such as fresh fruit in the winter.
Detailed explanation-2: -Why America Imports So Much. Although America can produce all it needs, China, Mexico, and other emerging market countries can produce it for less. Their cost of living is lower, which allows them to pay their workers less.
Detailed explanation-3: -A weaker domestic currency stimulates exports and makes imports more expensive; conversely, a strong domestic currency hampers exports and makes imports cheaper.
Detailed explanation-4: -Two reasons countries import and export the same goods are variations in transportation costs and seasonal effects. In the example of the United States and Canada both importing and exporting construction materials, transportation costs are the likely explanation.