NAFTA and Trade Deficits Analysis

What is the term used to describe the difference between a country's exports and imports?

• Trade balance

• Net exports

• Trade deficit

• Trade surplus

Why do some people believe that trade deficits are bad?

• They believe it results in higher taxes.

• They think it means a country is not producing enough goods.

• They believe it leads to job losses in the importing country.

• They think it causes inflation.

What was one of the criticisms of NAFTA?

• It raised the prices of consumer goods.

• It led to companies moving out of the US.

• It decreased US trade deficits.

• It increased the number of manufacturing jobs.

What happens when a currency appreciates?

• Exports become more expensive.

• Imports become more expensive.

• Exports become cheaper.

• Imports become cheaper.

What is the balance of payments?

• A list of a country's financial assets.

• A statement of all international transactions.

• A record of a country's imports and exports.

• A summary of a country's trade agreements.