A firm in China sells toys to a U.S.department store chain.Other things the same,these sales
A)increase U.S.net exports and decrease Chinese net exports.
B)decrease U.S.net exports and increase Chinese net exports.
C)increase U.S.and Chinese net exports.
D)decrease U.S.and Chinese net exports.

Question

Quizplus · Accepted Answer

When China sells toys to the U.S., it results in an import for the U.S., decreasing U.S. net exports. Conversely, it is an export for China, increasing Chinese net exports.

A Firm in China Sells Toys to a U