7.1 The United States in the International Economy

Which of the following describes the importance of international trade around the​ world? A. Imports and exports remain a smaller fraction of GDP in the U.S. than in most other countries B. In some smaller countries such as​ Belgium, imports and exports make up less than 25 percent of GDP. C. France is the only​ high-income country that is less dependent on international trade than the U.S. D. Japan is the only​ high-income country that is more dependent on international trade than the U.S. E. Rapid growth in India over the past 20 years has resulted in it becoming the third largest exporter.

A. Imports and exports remain a smaller fraction of GDP in the U.S. than in most other countries

Which of the following factors may explain why a country like the Netherlands is more likely to import and export larger fractions of its GDP than would a larger​ country, such as China or the United​ States? A. The Netherlands must rely on imports for a large range of products. B. The Netherlands is a small country with a level of GDP that is only a small fraction of that of China or the U.S. C. Given its small​ size, the Netherlands must specialize in producing and exporting only a few​ products; it cannot produce the wide range of products that China or the U.S. can produce. D. All of the above

D. All of the above

Briefly explain whether you agree or disagree with the following​ statement: ​"International trade is more important to the U.S. economy than to most other​ economies."

Disagree. Exports and imports are a relatively small fraction of the United States GDP.

Briefly explain whether you agree with the following​ statement: ​"Japan has always been much more heavily involved in international trade than are most other nations. In​ fact, today Japan exports a larger fraction of its GDP than do​ Germany, the United​ Kingdom, or the United​ States."

Disagree. Japan exports about​ 20% of its​ GDP, of the​ above, only the U.S. exports a smaller percentage.

If the United States were to stop trading goods and services with other​ countries, which of the following U.S. industries would be likely to see their sales decline the​ most? A. Most manufacturing industries. B. Most of the agriculture industry. C. Some service industries. D. Only A and B. E. All of the above. F. None of the above.

E. All of the above

The United States is the leading exporting country in the world. True False

False

Which of the following statements is true about the importance of trade in the U.S.​ economy? A. Only a few U.S. manufacturing industries depend on trade. B. Exports and imports have steadily declined as a fraction of U.S. GDP. C. While exports and imports have been steadily rising as a fraction of​ GDP, not all sectors of the U.S. economy have been affected equally by international trade. D. None of the above.

While exports and imports have been steadily rising as a fraction of​ GDP, not all sectors of the U.S. economy have been affected equally by international trade.

Briefly explain whether the value of U.S. exports is typically larger or smaller than the value of U.S. imports. The value of U.S. exports ________________. For the U.S.​ economy, imports and exports represent _____________ fraction of GDP compared to what they were in 1970.

has been smaller than the value of U.S. imports since about 1980 a larger