Intro to Macroeconomics - Inflation & Trade

9 important questions on Intro to Macroeconomics - Inflation & Trade

What might countries disagree on regarding trade agreements?

Disagreements can arise on who should pay taxes, protect workers, or limit population.

What kind of pressure do politicians face regarding local jobs?

Politicians often respond to pressure from voters to protect local authorities by limiting imports.

What might happen to local businesses if a country imports cheaper goods?

Local businesses could shut down or lay off workers due to lost customers.
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Why might a government block trade with certain countries?

Concerns for safety can lead governments to block trade, limiting technology exports to political rivals.

What does inflation mean for consumer buying power?

Consumers can purchase less with the same amount of money.

What is a trade imbalance?

It occurs when imports and exports are not balanced.

What is a trade deficit?

A trade deficit occurs when exports < imports.

What is a trade surplus?

A trade surplus happens when exports > imports.

How can industries become dependent on global demand?

Some local businesses rely heavily on selling to foreign markets.

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