How important is international trade to the U.S. economy?Explain

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Please read the essay on “The U.S. in the Global Economy” and answer the following 4 questions. Identify your answers clearly by using the numbers preceding the questions.

1. How important is international trade to the U.S. economy? If the European euro were to increase in value (appreciate) in the foreign exchange market, would it be easier or harder

for the French to sell their wine in the United States? Suppose you were planning a trip

to Paris. How would appreciation of the euro change the dollar cost of your trip?  Explain.

2. What factors account for the rapid growth of world trade since the Second World War?

Explain.

3. What measures do governments take to promote exports and restrict imports? Explain.

4. What forms do trade adjustment assistants take in the United States? How does such

assistance promote support for free trade agreements? Explain

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