Question

in the u.s., international trade raises many
that are the same as issues raised by
in the domestic economy.
monetary policy issues; real productivity gains
fiscal policy issues; trade - offs that control inflation
public policy issues; competitive market forces
public policy issues; workers demands for long - term
benefits
question 16 (1 point)
if an economy has a high level of trade in goods and services
relative to gdp and its exports and imports are balanced, what
value will the net flow of foreign investment be?
unchanged
lower
higher
zero

Explanation:

For the first question, international trade often brings up public - policy - related matters. In domestic economies, competitive market forces also raise similar public - policy - type issues. Monetary policy (about money supply) and fiscal policy (government spending/taxing) are more specific and not as directly related as public policy. Workers' demands are more labor - related and not as broad as the issues from competitive market forces.

For the second question, the balance of payments formula is \(Current\ Account + Capital\ Account=0\). The current account is related to trade (goods, services, etc.). If exports and imports (a major part of the current account) are balanced (current account balance is close to zero), then from the formula \(Capital\ Account=-Current\ Account\), the net flow of foreign investment (related to the capital account) is zero.

Answer:

For the first question: public policy issues; competitive market forces.
For the second question: zero.