The US exported more than $67 billion in goods to Japan in 2017 and imported more than $136 billion from Japan at an exchange rate of $1 = 110 yen. Suppose that in 2018 the exchange rate changes and $1 = 105 yen, but in 2019 it changes again so that $1 = 120 yen.

Explain the impact these changes would have each year on the trade balance and why.

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The trade balance is the difference between a countrys exports and imports of goods A positive trade ... View the full answer