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The following situation is beneficial for the following parties (couldn't upload image):

A) exporters from the US
B) importers from Japan
C) importers from the US

User EdH
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1 Answer

5 votes

Final answer:

The described situations show how different aspects of international trade and investments can be beneficial for both exporters and importers, depending on exchange rates and trade policies. Investments yielding returns can encourage further economic engagement.

Step-by-step explanation:

The situation you've described involves various aspects of international trade and investment. When Mexico imports services from Japan, this is beneficial for Japanese exporters and can be seen as a cost or benefit for Mexican importers depending on the value and necessity of the services. If the services are essential and cannot be produced domestically at a competitive rate, it could be beneficial for Mexico as well. On the other hand, when Mexico exports goods to Canada, this benefits Mexican exporters and potentially Canadian importers if the goods are cheaper or of better quality than alternatives. Lastly, U.S. investors receiving a return from investments in Mexico is clearly beneficial for the U.S. investors themselves and can also be positive for the Mexican economy if those investment returns encourage further investment. An understanding of exchange rates and trade policies can help explain the nuances of these economic interactions between countries.

User Linnea
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