Business
Engineering
Math
Science
Social Science
Suppose that a textile workers’ union encourages people to buy only American-made clothes. What would this policy do to the trade balance and the real exchange rate? What is the impact on the textile industry? What is the impact on the auto industry?
Principles of Economics (MindTap C...
Principles of Economics (MindTap C...
Suppose that a textile workers’ union encourages people to buy only American-made clothes. What would this policy do to the trade balance and the real exchange rate? What is the impact on the textile industry? What is the impact on the auto industry?
Explanation of Solution
When the textile industry encourages the customers to only consume the US-made textiles, it will lead to the increase in the demand for the US-made textiles and reduces the demand for the imported textiles of other countries. As a result, the imports of textiles in the economy will fall. As a result of the fall in the imports of the economy, the net exports of the economy will increase. When the net exports increase, it will lead to the higher demand for the US dollar in the currency exchange market. This can be shown on the diagram as follows:
Chapter 32 Solutions
Additional Business Textbook Solutions
Principles of Microeconomics (MindTap Course List)
ECON: MICRO4 (New, Engaging Titles from 4LTR Press)
Principles of Macroeconomics (MindTap Course List)
STATISTICS F/BUSINESS+ECONOMICS-TEXT
Probability and Statistics for Engineering and the Sciences
Brief Principles of Macroeconomics (MindTap Course List)
Essentials of Business Communication (MindTap Course List)
Corporate Financial Accounting
Fundamentals of Financial Management, Concise Edition (MindTap Course List)
Cornerstones of Financial Accounting
Financial & Managerial Accounting
Fundamentals of Financial Management (MindTap Course List)
Accounting Information Systems
Foundations of Business (MindTap Course List)
Fundamentals Of Financial Management, Concise Edition (mindtap Course List)
Financial And Managerial Accounting
Essentials of Economics (MindTap Course List)
Financial Accounting
College Accounting, Chapters 1-27
Management, Loose-Leaf Version
Intermediate Accounting: Reporting And Analysis
Managerial Accounting: The Cornerstone of Business Decision-Making
MKTG 12:STUDENT ED.-TEXT
Contemporary Marketing
Accounting Information Systems
Exploring Economics
Statistics for Business & Economics, Revised (MindTap Course List)
Accounting (Text Only)
College Accounting (Book Only): A Career Approach
Financial Accounting
College Accounting (Book Only): A Career Approach
Financial & Managerial Accounting
Fundamentals of Financial Management (MindTap Course List)
Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)
Principles of Macroeconomics (MindTap Course List)
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
Pkg Acc Infor Systems MS VISIO CD
Macroeconomics
Economics (MindTap Course List)
Economics For Today
Cornerstones of Cost Management (Cornerstones Series)
PAYROLL ACCT.,2019 ED.(LL)-TEXT
Practical Management Science
Purchasing and Supply Chain Management
Survey of Accounting (Accounting I)
Corporate Financial Accounting
Economics: Private and Public Choice (MindTap Course List)
Macroeconomics: Private and Public Choice (MindTap Course List)
MACROECONOMICS FOR TODAY
Microeconomics: Private and Public Choice (MindTap Course List)
Micro Economics For Today
Understanding Management (MindTap Course List)
