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Questions and Answers
What does the term 'trend of trade' refer to?
What does the term 'trend of trade' refer to?
- The general direction in which a country's imports and exports are moving over time (correct)
- The average cost of transportation for goods in global trade
- The specific tariffs applied to certain types of goods in international trade
- The total value of a country's imports and exports in a given year
What can be inferred from a positive trend of trade for a country?
What can be inferred from a positive trend of trade for a country?
- The country is facing trade deficits and increasing debt
- The country is imposing stricter import restrictions
- The country is experiencing a decrease in consumer demand for foreign goods
- The country's economy is growing and becoming more competitive in the global market (correct)
How can a negative trend of trade impact a country's economy?
How can a negative trend of trade impact a country's economy?
- It leads to a surplus in the balance of trade
- It encourages foreign investment and technological innovation
- It often results in increased government revenue from tariffs
- It may lead to a decrease in domestic production and employment (correct)
How does a deficit in the balance of payments affect a country's currency value?
How does a deficit in the balance of payments affect a country's currency value?
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What does the financial account of the balance of payments measure?
What does the financial account of the balance of payments measure?
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What does a surplus in the balance of payments indicate?
What does a surplus in the balance of payments indicate?
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