How the U.S. Could Lose $5 Billion of Corn Exports to China

Which are the world's top 3 corn producers, ranking from most to least corn produced?

• 1. 1. India

  2. 2. USA

  3. 3. China

• 1. 1. USA

  2. 2. Brazil

  3. 3. China

• 1. 1. USA

  2. 2. China

  3. 3. Brazil

• 1. 1. USA

  2. 2. China

  3. 3. Argentina

Its goals to achieve being self-sufficient is a result from, China wanting to….

• Be the only corn producer in the world

• Increase the amount of jobs in the market

• Securing the food supply for its citizens

• Both A and B

What is one potential consequence for US farmers due to China's push for self-sufficiency?

• Increased profits for US farmers as they explore new markets.

• Small profit margins for US farmers and a potential loss of an important market.

• Expansion of trade networks between the US and China.

• Reduced political pressure on the US government.

How might the shift in China's agricultural self-sufficiency impact global trade dynamics, particularly with regard to the US?

• Strengthening US economic power over China.

• Increasing US influence on global food safety standards.

• Potentially changing the dynamics of trade talks and diminishing US economic influence over China.

• Accelerating the formation of new trade networks between the US and Brazil.

According to McKinsey, the China Consumer Report states that in the 19th century, there were ... percent of the middle-class Chinese population and more than ... percent in 2023.

• 10/60

• 25/70

• 20/80

• 30/60

True or False: The number of Urbanisation in China is decreasing due to job opportunities and lower living standards

• TRUE

• FALSE

How could the US lose $5 billion of corn exports to China?

• US arable land is limited and heavily contaminated.

• The US no longer wants to have a trade agreement with China and wants to turn away from market trade.

• Brazil has an absolute advantage over the US in corn farming, thus leading to China choosing to work with Brazil instead.

• China wants to turn away from western influence and become self-sufficient in grains in the long-term.

True or False:

Only US farmers will be implicated or affected if and when China becomes self-sufficient in corn farming.

• TRUE

• FALSE

Answer explanation

Chinese farmers will also be implicated, as they don't have the modern agricultural technologies and farming practices needed to produce enough corn to meet the country's growing demand. Also, every other country exporting corn to China will also be affected.

According to A. Smith, in our case, China should specialize in producing a good that has a(n) …..

• comparative advantage compared to the US

• absolute advantage compared to the US

• comparative advantage compared to Mexico

• absolute advantage compared to Mexico

True or False: Smith and Ricardo would agree on Mexico’s decision to ban GMO corn

• TRUE

• FALSE