Question

In its recent report, The Conference Board’s Global Economic Outlook 2015, updated November 2014, projects China’s growth between 2015 and 2019 to be about 5.5%. International Business Times reports that China is the United States’ third-largest export market, with exports to China growing 294% over the last ten years. Explain what impact China has on the U.S. economy.

a) Increased exports and economic growth
b) Decreased exports and economic contraction
c) Increased imports and economic contraction
d) Decreased imports and economic growth

Answer 1

China's significant growth as the third-largest export market for the U.S. has led to economic growth by supporting American businesses and job creation. The 294% growth in U.S. exports to China over the past decade indicates a strong economic relationship that influences trade balance, domestic policies, and international relations.

Step-by-step explanation:

The impact of China on the U.S. economy has been significant, especially considering that China is the third-largest export market for the United States. The International Business Times reports a 294% growth in U.S. exports to China over the past decade. This substantial increase in exports contributes to economic growth as it supports U.S. businesses and creates jobs. Specifically, exports to China may help to boost production and employment within various sectors of the U.S. economy that manufacture goods in demand by Chinese consumers and businesses. However, the relationship is complex, and there are concerns about the U.S. trade deficit with China, intellectual property rights, and the valuation of China's currency. Overall, China's economic growth and trade policies have a notable impact on the U.S. economy, influencing not only the balance of trade but also domestic economic policies and international relations.