in the u.s., international trade raises many \nthat are the same as issues raised by \nin the domestic…

in the u.s., international trade raises many \nthat are the same as issues raised by \nin the domestic economy.\nmonetary policy issues; real productivity gains\nfiscal policy issues; trade - offs that control inflation\npublic policy issues; competitive market forces\npublic policy issues; workers demands for long - term\nbenefits\nquestion 16 (1 point)\nif an economy has a high level of trade in goods and services\nrelative to gdp and its exports and imports are balanced, what\nvalue will the net flow of foreign investment be?\nunchanged\nlower\nhigher\nzero

in the u.s., international trade raises many \nthat are the same as issues raised by \nin the domestic economy.\nmonetary policy issues; real productivity gains\nfiscal policy issues; trade - offs that control inflation\npublic policy issues; competitive market forces\npublic policy issues; workers demands for long - term\nbenefits\nquestion 16 (1 point)\nif an economy has a high level of trade in goods and services\nrelative to gdp and its exports and imports are balanced, what\nvalue will the net flow of foreign investment be?\nunchanged\nlower\nhigher\nzero

Answer

Brief Explanations:

For the first question, international trade often brings up public - policy - related matters. In domestic economies, competitive market forces also raise similar public - policy - type issues. Monetary policy (about money supply) and fiscal policy (government spending/taxing) are more specific and not as directly related as public policy. Workers' demands are more labor - related and not as broad as the issues from competitive market forces.

For the second question, the balance of payments formula is (Current\ Account + Capital\ Account=0). The current account is related to trade (goods, services, etc.). If exports and imports (a major part of the current account) are balanced (current account balance is close to zero), then from the formula (Capital\ Account=-Current\ Account), the net flow of foreign investment (related to the capital account) is zero.

Answer:

For the first question: public policy issues; competitive market forces. For the second question: zero.