If BOT or balance of trade will i Mexico is going up. this indicates that import
ID: 1214375 • Letter: I
Question
If BOT or balance of trade will i Mexico is going up. this indicates that imports from Mexico to USA are a) rising b) falling 17) If USA National income rose relative to that of Russia. then trade deficit with Russia will a) increase b) decrease 18) If the British government increased tariffs on US goods being imported into England. this will cause the US Exports to England Co a) increase h) decrease c) not change 19) If the US Dollar depreciates against the f-uro. the USA balance of Trade with the Eurozone will a) increase h) decreaseExplanation / Answer
(16) (b)
Trade balance (BOT) for USA = Exports to Mexico - Imports from Mexico
If BOT is rising, it means that Exports is rising more than imports. In other words, imports from Mexico are falling.
(17) (a)
Trade deficit = Imports - Exports
If US national income rises, US import demand will rise, so Trade deficit also rises.
(18) (b)
A tariff on US goods in Britain will raise the price of US goods in Britain, so import demand for US goods will fall in Britain.
(19) (a)
If dollar depreciates, exports become more competitive & imports become costlier. So, exports increase and imports decrease in US, and US trade balance will rise.