Both exports and imports have been rising as a percent of U.S. GDP, as the U.S. economy
Question:
Both exports and imports have been rising as a percent of U.S. GDP, as the U.S. economy becomes more global. One consequence is that we will be more impacted by events in the rest of the world. Use Figures 8–2 through 8–5 to indicate how these international events might affect the United States. Briefly describe why.
Event A: The European Community (EC) results in a wealthier Europe. This results in an increased demand for U.S. exports.
Event B: The European Community erects high tariff barriers, reducing U.S. exports to Europe.
Event C: The value of the dollar falls, with the result that U.S. goods are cheaper to the rest of the world.
Event D: Oil prices go up, raising the cost of producing goods in the United States.
Figure 8-2:
Figure 8-3:
Figure 8-4:
Figure 8-5:
Step by Step Answer:
Event AFigure 82 Historically as the rest of the world prospers ...View the full answer
