How is foreign trade in inputs similar to trade in outputs?
A)U.S.producers buy (outsource)cheap foreign inputs (labor)while U.S.consumers buy cheap foreign outputs (U.S.imports).
B)U.S.consumers sell (outsource)cheap foreign inputs (labor)while U.S.producers sell cheap foreign outputs (U.S.imports).
C)U.S.producers sell (outsource)cheap foreign inputs (labor)while U.S.consumers buy cheap foreign outputs (U.S.imports).
D)All of the choices are correct.

Question

Quizplus · Accepted Answer

Foreign trade in inputs, like labor, is similar to trade in outputs in that U.S. producers often seek cheaper foreign inputs to reduce production costs, just as U.S. consumers seek cheaper foreign outputs (imports) for consumption, aiming to save money on goods and services.

How Is Foreign Trade in Inputs Similar to Trade in Outputs