The value of the goods and services Australia purchases from the U.S. is less than the value of goods and services the U.S. purchases from Australia. The U.S. has a. positive net exports with Australia and a trade surplus with Australia. b. negative net exports with Australia and a trade surplus with Australia. c. positive net exports with Australia and a trade deficit with Australia. d. negative net exports with Australia and a trade deficit with Australia.
Business · High School · Mon Jan 18 2021
Answered on
Let's break this down:
If the value of the goods and services Australia purchases from the U.S. is less than the value of goods and services the U.S. purchases from Australia, it implies that Australia is buying more from the U.S. than the U.S. is buying from Australia.
This situation suggests that the U.S. has:
c. Positive net exports with Australia and a trade deficit with Australia.
Positive net exports indicate that a country is exporting more (selling more to other countries) than it is importing (buying from other countries). A trade deficit specifically occurs when a country's imports exceed its exports in value, which aligns with the scenario described in the question regarding the U.S.'s trade relationship with Australia.