Bob traps lobsters in Maine and sells them to a restaurant in Mexico.Other things the same,these sales
A)increase U.S.net exports and have no effect on Mexican net exports.
B)increase U.S.net exports and decrease Mexican net exports.
C)decrease U.S.net exports and have no effect on Mexican net exports.
D)decrease U.S.net exports and increase Mexican net exports.

Question

Quizplus · Accepted Answer

When Bob sells lobsters to a restaurant in Mexico, it increases U.S. exports (since he's selling goods to a foreign country) and decreases Mexican imports (since they're buying goods from a foreign country). Therefore, U.S. net exports increase (exports-imports) and Mexican net exports decrease (imports-exports).

Bob Traps Lobsters in Maine and Sells Them to a Restaurant