If the US Continually Runs a Bilateral Trade Deficit with Japan, Then

question 61

Multiple Choice

If the U.S. continually runs a bilateral trade deficit with Japan, then

• A) Japan's trade policies must be unfair to the United States.
• B) the United States is worse off as the result of its trade with Japan.
• C) Japan is the low-cost supplier of goods that we import intensively.
• D) both a and b are true.

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Definitions:

Ordinary Shares

Equity securities representing ownership in a company, which entitle holders to vote at shareholder meetings and receive dividends.

Preference Shares

A class of ownership in a corporation that has a higher claim on assets and earnings than common shares, typically with fixed dividends and without voting rights.

NCI

Non-controlling interest, a portion of the equity in a subsidiary not attributable, directly or indirectly, to the parent company.

Consolidated Statement

Financial statements that represent the combined financials of a parent company and its subsidiaries, showing the total of assets, liabilities, and equities.