A main reason why the U.S. trade deficit grew so large from 1997 to 2000 was that
a. Congress removed all tariffs and trade restrictions on imports.
b. NAFTA was introduced and Mexican exports flooded the United States.
c. the international value of the dollar fell during the 1990s, which encouraged U.S. exports.
d. the international value of the dollar rose in the last half of the 1990s, which encouraged U.S. imports and damaged U.S. exports.
d
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Exporting nations often agree to voluntary export restraints in an attempt to
A) decrease inflation. B) increase global welfare. C) avoid more restrictive trade policies. D) employ more workers in the importing nation.
The concept of limited liability
A) does not apply to a corporation. B) means that the owners of a corporation have liability limited to the value of the shares in the firm. C) means that owners of a firm are subject to double taxation. D) limits the amount of specialization that can occur in a firm.