1. Explain why a stronger dollar could enlarge the U.S. balance-of-trade deficit. Explain why a weaker dollar could affect the U.S. balance-of-trade deficit.

2. Governments of many countries enact policies that can have a major impact on international trade flows.

a. Explain how governments might give their local firms a competitive advantage in the international trade arena.

3.

There is an ongoing debate between the United States and China regarding whether the Chinese yuan