If Present Growth Trends in China Continue, the Chinese Economy

question 93

Multiple Choice

If present growth trends in China continue, the Chinese economy measured by GDP will likely surpass that of the United States in the next couple of decades, although GDP per person will lag behind because __________.

• A) the country exports more goods than it imports
• B) the large population in China means the standard of living for the average Chinese person will improve more slowly
• C) the country has had to borrow so much money to stimulate its economy
• D) China has not had financial reserves needed to extend loans to other countries
• E) China has been reluctant to institute market-oriented reforms and open itself to investment from abroad

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Definitions:

General Agreement on Tariffs and Trade

An international treaty that was aimed at reducing tariffs and other trade barriers to promote international trade; it was the precursor to the WTO.

Trade Restrictions

Measures imposed by governments to limit or control international trade, such as tariffs, quotas, and embargoes.

Retaliation

Actions taken in response to an offense or wrongdoing, often seen in international trade policies as countermeasures to tariffs.

Trade War

A situation where countries impose tariffs or other trade barriers against each other in response to disputes, which can lead to decreased international trade.