The Value of Goods Imported into Spain Exceeds the Value

question 251

Multiple Choice

The value of goods imported into Spain exceeds the value of Spanish exports. This indicates that Spain

• A) has an exchange rate decrease.
• B) utilizes high tariffs.
• C) has a budget deficit.
• D) has a trade deficit.

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Definitions:

World Price

The worldwide market price of a good or service, affected by the balance of global demand and supply.

Nontariff Barrier

Measures other than tariffs that countries use to control the amount of trade across their borders, including quotas, embargoes, sanctions, and other restrictions.

Import

The act of bringing goods or services into a country from abroad for sale.

Export Restraints

Government-imposed limitations on the quantity or value of goods that can be exported from a country.