The US Trade Deficit Has Been Mainly Caused By

question 65

Multiple Choice

The U.S. trade deficit has been mainly caused by:

• A)production of inferior goods in the U.S.
• B)unfair trade restrictions imposed by other countries on imports.
• C)a low rate of national saving.
• D)cheap labor in other countries.

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Definitions:

Functional Currency

The main currency used by a business entity to conduct its economic activities and financial reporting.

Acquisition Differential

The difference between the cost of an acquisition and the fair value of the net identifiable assets of the acquired entity.

Exchange Rates

The value of one currency for the purpose of conversion to another currency.

Ending Inventory

The value of goods available for sale at the end of an accounting period, calculated by adding purchases to the beginning inventory and subtracting the cost of goods sold.