Suppose a Video Craze in the United States Makes a Particular

question 8

Multiple Choice

Suppose a video craze in the United States makes a particular Japanese-produced video game very popular. This would tend to:

• A)​affect the U.S.balance of payments but not the balance of trade.
• B)​reduce any existing balance of trade deficit in the United States.
• C)​increase the balance of trade deficit of the United States.
• D)​increase the balance of trade surplus of the United States.

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Definitions:

Consumption Effects

The impact of consumer behavior on the economy, environment, and society, including both positive and negative consequences.

Product Cannibalization

A situation where a new product significantly reduces the sales or market share of the company's existing products.

Media Promotion

The use of various media channels, such as TV, radio, the internet, and social media, to advertise and promote a product, service, or brand to a wide audience.

Functionally Different

Describes products, services, or roles that serve different purposes or functions, catering to various needs or preferences.