Question

If the U.S. dollar is strong, what is the impact on trade between China and the U.S.?

Imports from China to the U.S. increase.
Exports from the U.S. to China increase.
Imports from China to the U.S. decrease.
There is no change to the balance of trade.

Answer 1

Option A, “Import from China to the U.S. increase.

Step-by-step explanation:

The option “A” is correct because if the dollar is strong this means china have to pay more for the import (import become costly). While for the U.S. it becomes cheaper to import from China. Moreover, the strong Dollar can buy more commodity from China because the U.S will have to pay for the commodity. Thus, import in the U.S. will increase. But, importing commodity by china from the U.S is costlier. Thus, import in China will fall.

Answer 2

If the U.S. dollar is strong, then the impact on trade between China and the U.S. would be, imports from China to the U.S. increase. The correct option among all the options that are given in the question is the first option. I hope the answer has actually come to your great help.