when the value of our goods exports is less than the value of our goods imports, course hero

Full Answer

When the value of our goods exports is less than imports?

When the value of our goods exports is less than the value of our goods imports, there will be an unfavorable balance of trade. 6 give an example of a credit in a US current account

When a nation exports more than it imports it is running?

When a nation exports more than it imports it is running a balance of trade surplus. d. When a nation exports more than it imports it is running a balance of trade surplus. 79. The balance of payments: a. can only be expanded when the government has foreign exchange reserves. b. is always zero c.

Why do countries import goods from the United States?

U.S. imports provide people in other countries with the dollars power required for the purchase of U.S. exports. d. U.S. imports provide people in other countries with the dollars power required for the purchase of U.S. exports. 73.

Can one country have the comparative advantage in both goods?

One country can have the comparative advantage in both goods, but it can only have the absolute advantage in one good as long as the opportunity costs are different. a. Specialization and trade along the lines of comparative advantage allows nations to consume more than if they were to produce just for themselves.

What is the value of a nations imports subtracted from its exports?

the value of a nations imports subtracted from its exports balance of trade can be given in terms of goods, services, or goods and services

Why do we import?

U.S. imports provide people in other countries with the dollars power required for the purchase of U.S. exports.

Why do governments use embargoes?

the governments use of embargoes tariffs, quotas, and other restrictions to protect domestic producers from foreign competition

What is comparative advantage?

comparative advantage refers to the relative opportunity costs between countries of producing the same goods

What would happen if the supply of foreign cars to the domestic market decreased?

the supply of foreign cars to the domestic market would decrease causing the prices to rise

Does global output increase?

total world output increases and therefore the potential for greater total world consumption also increases