Canada trades with the US. The volume of trade is rather large as Canadian exports to the
Question:
Canada trades with the US. The volume of trade is rather large as Canadian exports to the US amount for nearly one billion dollars a day. Canada runs a sizable trade surplus with the US (feel free to assume that Canadian goods exported to the US are normal goods). Given this information, a US recession will cause
Canada's exports to the US to decrease, resulting in reduced economic growth in Canada | |
Canada's imports fom the US to decrease causing reduced economic growth in Canada | |
Canada's consumption spending to increase in order to compensate for the reduced spending in the US. | |
Canada's investment spending to increase in order to compensate for the reduced spending in the US |
International Marketing And Export Management
ISBN: 9781292016924
8th Edition
Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr