In 2010, Canada had a trade deficit of $10.8 billion because: A.Canadian consumers bought far more...

In 2010, Canada had a trade deficit of $10.8 billion because:

A.Canadian consumers bought far more domestic goods and services than foreign goods and services.

B.Japan stopped exporting goods to Canada.

C.Canadian consumers stopped buying Japanese goods and services.

D.Canada imported more products than it exported.

E.Canadian companies sold more goods to other countries than foreign companies sold here.

Solutions

Expert Solution

Answer;

Option D is the correct answer.

Trade deficit occurs when the home country's imports exceeds its exports during a given period of time. In 2010, Canada had a trade deficit of $10.8 billion because:Canada imported more products than it exported.

Canadian consumers bought far more domestic goods and services than foreign goods and services, Japan stopped exporting goods to Canada, Canadian consumers stopped buying Japanese goods and services and Canadian companies sold more goods to other countries than foreign companies sold here etc. are faviorable for decrease the trade defficit of Canada.

Rahul Sunny answered 1 year ago

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