How Is Foreign Trade in Inputs Similar to Trade in Outputs

question 45

Multiple Choice

How is foreign trade in inputs similar to trade in outputs?

• A)U.S.producers buy (outsource)cheap foreign inputs (labor)while U.S.consumers buy cheap foreign outputs (U.S.imports).
• B)U.S.consumers sell (outsource)cheap foreign inputs (labor)while U.S.producers sell cheap foreign outputs (U.S.imports).
• C)U.S.producers sell (outsource)cheap foreign inputs (labor)while U.S.consumers buy cheap foreign outputs (U.S.imports).
• D)All of the choices are correct.

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The total earnings of individuals, affecting their purchasing power and demand for goods and services in the economy.

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