After you have studied Economics in the News on pp. 234–235, answer the following questions.

a. What are the U.S. trade balances with Mexico and Canada and how have those balances changed since 2000?

b. What are the concerns of the Trump administration about these balances?

c. What action does the Trump administration propose taking to change these balances?

d. What is the source of the international trade balance of the United States? Explain the fundamental equation that determines the balance.

e. What effect will the Trump administration’s proposed action have on the balances of trade with Mexico and Canada?

f. What other effects will the proposed actions have on trade with Mexico and Canada?