Lesson 39 - unit 8

Question 1

What are 2 typical forms of foreign investment?

Answer 1

1. American companies invest money to build a factory or set up some other business in another country.
2. Americans buy stocks or bonds in a foreign country or vice versa.

Question 2

How do American investments in other counties help those countries?

Answer 2

It helps them grow economically and provide jobs.

Question 3

As of 2009, what 2 countries held the most U.S. treasury securities?

Answer 3

China and Japan.

Question 4

What are the 2 main reasons why the U.S. developed a trade deficit?

Answer 4

1. A large part of Federal government’s deficits were paid for by foreign banks and private foreign investors purchasing bonds issued by the U.S. government.
2. America’s increasing dependence on foreign products led to the United States buying more from other countries than it sold to other countries.

Question 5

We pay for out imports with our ________ or by _________.

Answer 5

We pay for out imports with our exports or by borrowing.

Question 6

When a company moves production to another country, that move changes the competition dynamics in that industry with regard to what?

Answer 6

Price.

Question 7

How is trade a two-way street?

Answer 7

Eliminating imports means that other countries will not want to buy what we produce.

Question 8

How is trade a win-win transaction?

Answer 8

Both countries that engage in trade are better off in the big picture.

Question 9

How are there some losers as a result of international trade?

Answer 9

Some people lose their jobs.

Question 10

What are 3 ways the government provides assistance to help people who have lost their job as a result of international trade?

Answer 10

1. Unemployment assistance
2. Help finding a new job
3. Retraining to learn a new skill`