According to this Application, during the late 1980s, Argentina pegged its currency to the U.S. dollar. When the dollar appreciated sharply on world markets after 1995, this caused a large trade deficit in Argentina because
A) Argentina could no longer afford to purchase as many imported products.
B) Argentinean exports grew relative to the nation's imports.
C) U.S. exports to Argentina declined.
D) Argentinean exports became relatively more expensive in global markets.
D
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The effective owner of a resource is the person who
A) can appropriate the income that arises from selling the services of the resource. B) enjoys physical possession of the resource. C) has legal title to the resource. D) has mixed the resource with individual effort to create private property.
Bonds are
A) promises to repay loans. B) promissory notes issued by partnerships. C) promissory notes issued by proprietorships. D) shares of ownership in a corporation.
International trade currently involves about ______________ worth of goods and services thundering around the globe.
a. $200 billion b. $20 trillion c. $200 trillion d. $2 trillion
Technology-based comparative advantage
A. is totally contradictory to the Heckscher-Ohlin (H-O) theory of comparative advantage. B. usually results in immiserizing growth. C. emphasizes that poorer and less industrialized nations cannot compete in world markets with richer and more industrialized nations. D. can help explain how the United States went from being a net exporter of steel to become a net importer of steel.