Country A and Country B entered into a free trade agreement recently. After this, Country A starts importing heavy machinery from Country B. Country A previously imported such machinery at lower rates from another country. Which of the following has occurred in this scenario?Question 4Select one:a.Trade creationb.Efficiency gainc.Trade deficitd.Trade diversion

Multiple Choice QuestionWhat is the result when a country's exports exceed its imports?Multiple choice question.A trade deficitA trade surplusA trade equilibriumAn immediate asset transaction

Which of the following refers to the situation when a country's imports exceed its exports? Question 10Answer a. Trade deficit b. Trade surplus c. Trade advantage d. Balance of payments e. Balance of trade

Multiple Choice QuestionA country experiences a trade surplus under which of the following conditions?Multiple choice question.When it imports more goods and services than it exportsWhen it exports more services than it does goodsWhen it exports more goods and services than it importsWhen it exports more goods than it does services

A country has a trade surplus of $20 billion with its trading partners over a year. Which change would cause the country to have a trade deficit the following year, assuming everything else remains the same?A.The country decreases its exports by $30 billion.B.The country increases its imports by $10 billion.C.The country decreases its imports by $10 billion.D.The country increases its exports by $30 billion.

4. When a country both exports and imports a type of commodity, the country is engaged inA) inter-industry trade.B) an attempt to monopolize the relevant industry.C) increasing returns to scale.D) intra-industry trade.E) imperfect competition