The graph below shows the trend of the terms of trade for the U.S. and China. Whichwould be inferred from the graph?Figure 6.9 Evolution of the Terms of Trade for the United States and China125120 -115-110 -China1051009590-85UnitedStatoo8075701980198219841986108819901092199410961998U A) China's growth may have hurt the U.S. terms of trade.200020022004200620082010B) China's recent growth may have been export-biased.C) U.S. terms of trade have been hugely deteriorated over the past decasde.O D) U.S. exports have been competing with China's imporing sectors.20122014

It is showing the ratio of export prices to import prices. It is defined as the relative price of…

The graph below shows the trend of the terms of trade for the U.S. and China. Which would be inferred from the graph? Figure 6.9 Evolution of the Terms of Trade for the United States and China 125 120 115 110 - China 105 100 - 95 90 - 85 - 80 United Statoo 75 70 1980 1982 1984 1986 1988 1990 1992 1994 A) China's growth may have hurt the U.S, terms of trade. 1996 1998 2000 2002 2004 2006 2008 2010 B) China's recent growth may have been export-biased. 2012 2014 OC) U.S. terms of trade have been hugely deteriorated over the past decasde. O D) U.S. exports have been competing with China's imporing sectors.

The graph below shows the trend of the terms of trade for the U.S. and China. Which would be inferred from the graph? Figure 6.9 Evolution of the Terms of Trade for the United States and China 125 120 115 110 - China 105 100 - 95 90 - 85 - 80 United Statoo 75 70 1980 1982 1984 1986 1988 1990 1992 1994 A) China's growth may have hurt the U.S, terms of trade. 1996 1998 2000 2002 2004 2006 2008 2010 B) China's recent growth may have been export-biased. 2012 2014 OC) U.S. terms of trade have been hugely deteriorated over the past decasde. O D) U.S. exports have been competing with China's imporing sectors.

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter3: Interdependence And The Gains Rrom Trade

Section: Chapter Questions

Problem 7PA

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Similar questions

You just overheard your friend say the following: Poor countries like Malawi have no absolute advantages. They have poor soil, low investments in formal education and hence low-skill workers, no capital, and no natural resources to speak of. Because they have no advantage, they cannot benefit from trade. How would you respond?
Trade has income distribution effects. For example, suppose that because of a government-negotiated reduction in trade barriers, trade between Germany and the Czech Republic increases. Germany sells house paint to the Czech Republic. The Czech Republic sells alarm clocks to Germany. Would you expect this pattern of trade to increase or decrease jobs and wages in the paint industry in Germany? The alarm clock industry in Germany? The paint industry in Czech Republic? The alarm clock industry in Czech Republic? What has to happen for there to be no increase in total unemployment in both countries?
From the Work It Out Effects of Trade Barriers, you can see that a tariff raises the price of imports. What is interesting is that the price rises by less than the amount of the tariff. Who pays the rest of the tariff amount? Can you show this graphically?
If opening up to free trade would benefit a nation, then why do nations not just eliminate their trade barriers, and not bother with international trade negotiations?
Why might Belgium, France, Italy, and Sweden have a higher export to GDP ratio than the United States?