Question

Which of the following presents the correct picture of the outcome of increased world trade after the 1950s, contrary to Servan-Schreiber's prediction?

a) Third World countries have been excluded from this economic growth leading to stark imbalances in wealth.
b) The European Union has become the center of world trade, taking the position away from the United States.
c) The United States has continuously maintained the positive balance of trade it attained during the 1950s.
d) Economic power and potential has become more evenly distributed among the countries of the world.
e) SDRs and gold have lost their utility as the basic medium of financial exchange and most monetary statistics have started relating to the U.S. dollar.

Answer 1

The outcome of increased world trade post-1950s shows economic power becoming more evenly distributed among nations, with successful integration in global markets by several countries contrasting with the U.S.'s persistent trade deficits.

Step-by-step explanation:

The correct picture of the outcome of increased world trade after the 1950s, contrary to Servan-Schreiber's prediction, is that economic power and potential has become more evenly distributed among the countries of the world. Countries like Japan, the East Asian Tiger economies, China, and India have all experienced success by participating in global markets. Additionally, agreements such as the North American Free Trade Agreement (NAFTA) have promoted trade by reducing barriers, and the European Union economies have thrived with high levels of trade. Conversely, the United States has faced persistent trade deficits, which may not be sustainable and contradict the assertion that the U.S. has continuously maintained a positive balance of trade.