Understanding International Trade

Which country is the largest trading partner of the US?

• Canada

• China

• Brazil

• Mexico

Why does the US import most of its clothing?

• Lack of technology

• Higher quality abroad

• Better designs

• Cheaper prices

What does a depreciated dollar mean for US exports?

• They are unaffected

• They become cheaper

• They decrease in volume

• They become more expensive

What can Chinese people do with the dollars they earn from trade with the US?

• All of the above

• Purchase US goods

• Buy US real estate

• Invest in US stocks and bonds

How does international trade generally affect the global standard of living?

• Varies by country

• Improves it

• Has no effect

• Decreases it slightly