What explains Australia's recent large trade deficits? A. Unfair trade practices by Australian trading partners B. The poor quality of Australian goods relative to those of its trading partners C. An increase in investment, combined with a slight fall in national savings D. An increase in investment, combined with large government budget deficits
What explains Australia's recent large
A. Unfair trade practices by Australian trading partners
B. The poor quality of Australian goods relative to those of its trading partners
C. An increase in investment, combined with a slight fall in national savings
D. An increase in investment, combined with large government budget deficits
Pls solve asap with explanation.....must be correct...I will Upvote your work
Trade deficit: An import/export imbalance is a sum by which the expense of a nation's imports surpasses its fares. It's a single direction of estimating worldwide exchange, and it's likewise called a negative equilibrium of exchange. You can compute an import/export imbalance by taking away the all-out estimation of a nation's fares from the all-out estimation of its imports.
Option D is the right answer. The government has increased a lot of investment due to COVID-19. At the same time, the economy has faced a lot of budget deficits as the economy has to export less of the goods to China, one of the main exporting countries of the economy. The economy is facing huge unemployment. All this has led or forced the government to invest in the economy more, due to which there is a lot of trade deficits.
Option A IS the wrong answer because Australia does not use any unfair trade practices while trading the goods to different countries.
Option B is the wrong answer because the quality of goods and services are not bad. The economy produces good quality goods as compared to the trading partners.
Option C is the wrong answer because when the investment has increased in the economy, and the government's savings have also decreased, it will lead to more employment opportunities and development.
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