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Why might a nation export goods to other countries regardless of the exchange rates? A. because it is trying to eliminate its balance of trade B. because it created or grew more goods than its people can use C. because it cannot create or grow as many goods as its people need D. because it is trying to increase its trade deficit

User Lukas Jelinek
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2 Answers

15 votes
15 votes

Final answer:

A nation might export goods regardless of exchange rates if it produces more than its population can consume or has a comparative advantage in those goods. Trade restrictions may still be imposed to protect local industries or manage trade imbalances and their potential impacts on the economy.

Step-by-step explanation:

A nation might export goods to other countries regardless of the exchange rates for several reasons. One such reason is B. because it created or grew more goods than its people can use. This situation can lead to excess supply within the national market, potentially driving prices down and wasting resources. To prevent this, the nation might seek international markets for its surplus goods. Exporting can help maintain the balance between production and consumption, support national industries, and contribute to economic growth. Additionally, if a country has a comparative advantage in producing certain goods, it may continue to export them to benefit from trade.

Despite the benefits of removing trade barriers, a nation may restrict trade on some imported or exported products to protect domestic industries, preserve national security, protect consumers, manage environmental impacts, or respond to trade imbalances. For example, if a country has a trade deficit attributed to high levels of domestic consumption and borrowing, as the United States did in the late 1990s and early 2000s, it might restrict trade to help balance its international accounts and prevent potential economic instability.

User Zeeshan Bin Iqbal
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17 votes
17 votes

Answer:because it cannot create or grow as many goods as its people need B

Step-by-step explanation:

B

User Suz
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