what exchange system does the US and much of the developedworld use for internat

Question

what exchange system does the US and much of the developedworld use for international trade? What will happen if the US begins to buy a great deal morefrom a country than it sells to it using this system ofexchange? Explain why there is so much political opposition totrade what exchange system does the US and much of the developedworld use for international trade? What will happen if the US begins to buy a great deal morefrom a country than it sells to it using this system ofexchange? Explain why there is so much political opposition totrade

Explanation / Answer

We use the import/export system of trade, where if a countrydemands items made in other countries, their are usually tariffs onimporting it. When a country buys more than it sells, they tend tohave a negative net domestic product, which means the countryconsumes too much, which usually implies that other countries arebetter off. When we buy from foreign countries, you are effectivelysupporting businesses and employment overseas. In perfectcompetition, this is fine, but in the political game, a loweremployment rate implies that the politician is failing, which isnot the case, but Americans do not like to see negativenumbers.

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