Question

Which is the most accurate statement?

a. Japan is the dominant trading partner with the U.S.

b. We import most of our oil from Japan and China.

c. Our trade deficit with China in the 1990s grew much faster than our trade deficit with Japan.

d. Our trade problems with China are very similar to our trade problems with Japan.

Answer 1

Option D is most accurate!!.

Option A. Incorrect, China is the biggest trading partner of US ($636 Bn) while Japan is at ($204 Bn).

Option B. Incorrect, US imports about 50% of its crude imports from Canada. Hence this statement is wrong.

Option C. Correct, US trade deficit grew from 41Bn to 82 Bn (from 1990 to 2000) with Japan while with China this deficit zoomed from 10Bn to 83Bn. Therefore we can say that US trade deficit increased with China much faster then its trade deficit with Japan.

Option D. Incorrect, US has different issues with China than Japan. First is trade deficit with China is massive than Japan. Another is China use forced sharing of US patents therefore its benefits to US are limited when sharing technology while this is not the case with japan.

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